Real Estate Investing in Liberty Hill, Texas (78642)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78642 (Liberty Hill, TX)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Flat appreciation: Values have barely moved over 5 years (0.5% CAGR).
What’s happening in Liberty Hill, TX (78642)?
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Market Analysis: 78642 Liberty Hill
Investors eyeing 78642 need to respect the fundamentals at play. Home values of $495K come alongside slower price movement and elevated management overhead.
Distressed markets are won on execution, not on spreadsheets. ZIP 78642 reflects the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 78642 among TX's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Who lives in 78642 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
The right play in 78642 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Liberty Hill:
Property Strategy for 78642
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $376,979 | $2,240 | 4.3% | +5.8% | $125,660 |
| 4BR | $533,332 | $2,600 | 3.5% | +7.1% | $133,333 |
| 5BR | $614,257 | — | — | +8.4% | $122,851 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78642 Compare?
| Metric | 78642 | Liberty Hill | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $495,393 | $495,393 | N/A | $297,000 |
| 5-Year CAGR | 0.5% | 0.5% | N/A | 5.4% |
| Avg Rent | $2,257 | $2,257 | N/A | - |
| Cap Rate | 3.6% | 3.6% | - | - |
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 78642 (Liberty Hill, TX). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 78642 (Liberty Hill, TX)?
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Property managers serving Williamson County
Manage rentals here? List your business →PS Property Management is an Austin HOA Management Company. summary from their website
PURE Property Management of Texas aims to provide simple and satisfying rental experiences for all. summary from their website
MBM Property Management offers property management services for rentals in various Central Texas communities, including Austin, Cedar Park, Georgetown, and Round Rock. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $495,393 |
| Monthly Rent | $2,257 |
| Price-to-Rent | 18.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.5% |
| Cap Rate | 3.6% |
| 5-Year IRR | 4.1% |
📈 Home Appreciation
| 1-Year | -0.8% ▼ |
| 3-Year CAGR | -2.6% ▼ |
| 5-Year CAGR | +0.5% ▲ |
| 10-Year CAGR | +5.4% ▲ |
🏠 Rent Trends
| 1-Year | -2.3% ▼ |
| 3-Year CAGR | -1.1% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.6%). 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 78642
Population: 24,146
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 78642
Schools in This ZIP Code
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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.
Frequently Asked Questions
Are there empty rentals in Liberty Hill, TX?
Liberty Hill, TX sees elevated vacancy, which is reasonable relative to the broader TX rental market.
How strict are landlord regulations in Liberty Hill, TX?
Liberty Hill, TX operates under TX law, which is landlord-friendly overall for landlords. Expect steady treatment in typical lease and eviction cases.
How qualified is the tenant pool in Liberty Hill, TX?
The tenant pool in Liberty Hill, TX is solid, supported by local employment and population fundamentals. Rents of $2,257/mo are well-absorbed by the market.
What monthly rent should investors expect in Liberty Hill, TX?
Rental rates in Liberty Hill, TX average $2,257/mo. Tenant demand and $495K home values make the yield look reasonable by investor standards.
What does house hacking look like in Liberty Hill, TX?
For house hackers, Liberty Hill, TX is a challenging. The $2,257/mo rent on a unit helps defray the mortgage on a $495K property.
You know 78642 now. You don’t know where it ranks.
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How 78642 ranks in Austin-Round Rock-Georgetown, TX
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