Real Estate Investing in Rio Hondo, Texas (78583)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78583 (Rio Hondo, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 29.0% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Rio Hondo, TX (78583)?
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Market Analysis: 78583 Rio Hondo
The 78583 ZIP in Rio Hondo, TX is a local-operator market. Outside capital chasing a $209K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $209K asset, 78583 is the wrong submarket. If the plan prices in friction, the yield can still work.
In the broader TX picture, 78583 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Employment concentration in 78583 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 78583 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Rio Hondo:
Property Strategy for 78583
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $189,614 | $1,050 | 4.0% | +9.4% | $94,807 |
| 3BR | $230,230 | $1,420 | 4.4% | +10.4% | $76,743 |
Market Trends
Home Value History (with trend line)
📊 How Does 78583 Compare?
| Metric | 78583 | Rio Hondo | Brownsville-Harlingen, TX | Texas |
|---|---|---|---|---|
| Home Value | $209,385 | $209,385 | N/A | $297,000 |
| 5-Year CAGR | 4.4% | 4.4% | N/A | 5.4% |
| Avg Rent | $945 | $945 | N/A | - |
| Cap Rate | 3.5% | 3.5% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78583 (Rio Hondo, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $209,385 |
| Monthly Rent | $945 |
| Price-to-Rent | 18.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | +6.9% ▲ |
| 3-Year CAGR | +2.4% ▲ |
| 5-Year CAGR | +4.4% ▲ |
| 10-Year CAGR | +4.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 78583
Population: 5,472
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 78583
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
What kind of vacancy should I budget for in Rio Hondo, TX?
Rio Hondo, TX vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Are tenants stable in Rio Hondo, TX?
Rio Hondo, TX draws a steady base of working renters. Demand at the $945/mo rent level is reasonable for standard single-family and small multi rentals.
What strategy should investors use in Rio Hondo, TX?
Investors usually favor careful cash-flow rentals with hands-on management in Rio Hondo, TX. With home values at $209K and rents near $945/mo, other strategies can work but produce predictable rather than outsized returns.
What is the median home value in Rio Hondo, TX?
Typical homes in Rio Hondo, TX go for around $209K. The 5-year CAGR of 0.0% consistent price movement.
What do landlords charge for rent in Rio Hondo, TX?
Expect rents around $945/mo per month in Rio Hondo, TX. With home values at $209K, the yield math works out to reasonable levels for rental investors.
You know 78583 now. You don’t know where it ranks.
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How 78583 ranks in Brownsville-Harlingen, TX
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