Real Estate Investing in Buchanan Dam, Texas (78609)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78609 (Buchanan Dam, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- High vacancy: 36.7% of homes vacant — above national norms.
- Declining values: -0.1% 5-year CAGR — values have moved lower.
- High price-to-rent: Price-to-rent ratio 34.8 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Buchanan Dam, TX (78609)?
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Market Analysis: 78609 Buchanan Dam
On balance, ZIP 78609 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $368K median. It rewards specialists, not generalists.
The 78609 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
ZIP 78609's metrics run below Llano County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Resident income in 78609 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 78609 is an operator game, not a passive one. On balance, entry prices of $368K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Buchanan Dam:
Property Strategy for 78609
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $283,446 | $980 | 2.5% | +5.7% | $141,723 |
| 3BR | $429,227 | $1,360 | 2.3% | +6.3% | $143,076 |
Market Trends
Home Value History (with trend line)
📊 How Does 78609 Compare?
| Metric | 78609 | Buchanan Dam | Texas |
|---|---|---|---|
| Home Value | $368,178 | $368,178 | $297,000 |
| 5-Year CAGR | N/A | N/A | 5.4% |
| Avg Rent | $882 | $882 | - |
| Cap Rate | 1.9% | 1.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78609 (Buchanan Dam, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $368,178 |
| Monthly Rent | $882 |
| Price-to-Rent | 34.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.9% |
| Cap Rate | 1.9% |
| 5-Year IRR | 1.8% |
📈 Home Appreciation
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | -4.9% ▼ |
| 5-Year CAGR | -0.1% ▼ |
| 10-Year CAGR | +5.6% ▲ |
🏠 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 (1.9%). 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 78609
Population: 1,826
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
Frequently Asked Questions
What is the median home value in Buchanan Dam, TX?
Buchanan Dam, TX home values average about $368K. That price point suits investors targeting rentals with $882/mo in monthly income.
Is the tenant base reliable in Buchanan Dam, TX?
Tenant quality in Buchanan Dam, TX ranks as solid. Landlords generally report even-keeled occupancy at market rents of $882/mo.
How strict are landlord regulations in Buchanan Dam, TX?
For rental operators, Buchanan Dam, TX rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
How high is vacancy risk in Buchanan Dam, TX?
Buchanan Dam, TX sees elevated vacancy, which is reasonable relative to the broader TX rental market.
Can I live-in-and-rent in Buchanan Dam, TX?
Buchanan Dam, TX is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $368K price point reasonable to enter.
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