Real Estate Investing in Fredericksburg, Texas (78624)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78624 (Fredericksburg, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 20.3% of homes vacant — above national norms.
What’s happening in Fredericksburg, TX (78624)?
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Market Analysis: 78624 Fredericksburg
Investors eyeing 78624 need to respect the fundamentals at play. Home values of $520K come alongside slower price movement and elevated management overhead.
Distressed markets are won on execution, not on spreadsheets. ZIP 78624 registers the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
ZIP 78624's metrics run below Gillespie County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Employment concentration in 78624 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The right play in 78624 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 Fredericksburg:
Property Strategy for 78624
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $434,064 | $1,560 | 2.6% | +5.3% | $217,032 |
| 3BR | $504,086 | $2,060 | 2.9% | +6.6% | $168,029 |
| 4BR | $688,919 | $2,130 | 2.2% | +8.8% | $172,230 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78624 Compare?
| Metric | 78624 | Fredericksburg | Fredericksburg, TX | Texas |
|---|---|---|---|---|
| Home Value | $519,713 | $519,713 | N/A | $297,000 |
| 5-Year CAGR | 2.3% | 2.3% | N/A | 5.4% |
| Avg Rent | $2,140 | $2,140 | N/A | - |
| Cap Rate | 3.2% | 3.2% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78624 (Fredericksburg, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $519,713 |
| Monthly Rent | $2,140 |
| Price-to-Rent | 20.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.9% |
| Cap Rate | 3.2% |
| 5-Year IRR | 5.5% |
📈 Home Appreciation
| 1-Year | -1.4% ▼ |
| 3-Year CAGR | -0.9% ▼ |
| 5-Year CAGR | +2.3% ▲ |
| 10-Year CAGR | +5.7% ▲ |
🏠 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 (3.2%). 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 78624
Population: 23,610
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 78624
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.
Frequently Asked Questions
Should investors consider Fredericksburg, TX?
The 3.0/5 investability rating in Fredericksburg, TX reflects its $520K prices and $2,140/mo rents. Investors generally consider it a solid option within TX.
What is the typical rental rate in Fredericksburg, TX?
The typical rental in Fredericksburg, TX commands about $2,140/mo monthly. That rent profile predictable cash flow against the $520K purchase basis.
What is the typical renter like in Fredericksburg, TX?
Tenant quality in Fredericksburg, TX ranks as solid. Landlords generally report reliable occupancy at market rents of $2,140/mo.
How tight is the rental market in Fredericksburg, TX?
Fredericksburg, TX carries elevated vacancy risk. Expect predictable absorption at market rents of $2,140/mo.
Is Fredericksburg, TX better for rentals, flips, or BRRRR?
Fredericksburg, TX investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($520K prices, $2,140/mo rents) make it a reasonable choice.
You know 78624 now. You don’t know where it ranks.
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Community Ratings
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