Real Estate Investing in Horseshoe Bay, Texas (78657)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78657 (Horseshoe Bay, 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: 41.9% of homes vacant — above national norms.
- 1-year downturn: Values declined 3.8% in the last year.
- High price-to-rent: Price-to-rent ratio 35.5 — hard to cash-flow at these prices.
What’s happening in Horseshoe Bay, TX (78657)?
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Market Analysis: 78657 Horseshoe Bay
The 78657 ZIP in Horseshoe Bay, TX is a local-operator market. Outside capital chasing a $633K entry has to pair deep knowledge with the discount.
For an experienced owner, 78657 can be a an appealing option for hunting ground — but the discount at $633K reflects genuine risk that outside investors often underestimate.
Regionally, 78657 sits on the difficult end of the TX spectrum. The a viable market for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 78657 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 78657 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 Horseshoe Bay:
Property Strategy for 78657
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $339,461 | $1,450 | 3.1% | +5.5% | $169,730 |
| 3BR | $594,990 | $1,980 | 2.4% | +7.1% | $198,330 |
| 4BR | $1,273,251 | $2,100 | 1.2% | +8.0% | $318,313 |
| 5BR | $2,826,692 | — | — | +6.8% | $565,338 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78657 Compare?
| Metric | 78657 | Horseshoe Bay | Texas |
|---|---|---|---|
| Home Value | $633,340 | $633,340 | $297,000 |
| 5-Year CAGR | 2.2% | 2.2% | 5.4% |
| Avg Rent | $1,488 | $1,488 | - |
| Cap Rate | 1.8% | 1.8% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78657 (Horseshoe Bay, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $633,340 |
| Monthly Rent | $1,488 |
| Price-to-Rent | 35.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.8% |
| Cap Rate | 1.8% |
| 5-Year IRR | 4.0% |
📈 Home Appreciation
| 1-Year | -3.8% ▼ |
| 3-Year CAGR | -2.9% ▼ |
| 5-Year CAGR | +2.2% ▲ |
| 10-Year CAGR | +6.0% ▲ |
🏠 Rent Trends
| 1-Year | -21.2% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.8%). 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 78657
Population: 7,061
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
How much do tenants pay in Horseshoe Bay, TX?
Expect rents around $1,488/mo per month in Horseshoe Bay, TX. With home values at $633K, the yield math works out to reasonable levels for rental investors.
Which real estate strategy fits Horseshoe Bay, TX?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Horseshoe Bay, TX. The numbers - $633K homes against $1,488/mo rents - support that play.
What is the investability score for Horseshoe Bay, TX?
Horseshoe Bay, TX records an investability rating of 2.0/5, with median home values near $633K and average rents around $1,488/mo. That combination puts it in the durable tier for investor interest.
How do home values compare in Horseshoe Bay, TX?
Homes in Horseshoe Bay, TX typically sell near $633K. Prices have moved at a 0.0% 5-year CAGR, which consistent long-term demand.
Does house hacking make sense in Horseshoe Bay, TX?
House hacking works a challenging in Horseshoe Bay, TX. Rents of $1,488/mo against $633K acquisition make the strategy solid for owner-occupants.
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