Real Estate Investing in Austin, Texas (78705)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78705 (Austin, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 14.4% of homes vacant — above national norms.
- Declining values: -3.4% 5-year CAGR — values have moved lower.
- 1-year downturn: Values declined 3.9% in the last year.
- Lower household income: $24,126 median — tenant affordability is tighter.
What’s happening in Austin, TX (78705)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78705 Austin
ZIP 78705 inside Travis County looks affordable on the surface — median value of $330K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 78705 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Statewide comparisons place 78705 among TX's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Employment concentration in 78705 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The 78705 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 Austin:
Property Strategy for 78705
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $227,045 | $1,690 | 5.4% | +1.2% | $227,045 |
| 2BR | $331,749 | $2,000 | 4.3% | +0.2% | $165,874 |
| 3BR | $637,368 | $2,530 | 2.9% | +3.3% | $212,456 |
| 4BR | $893,702 | $2,980 | 2.4% | +3.2% | $223,426 |
| 5BR | $1,009,761 | — | — | +0.3% | $201,952 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78705 Compare?
| Metric | 78705 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $330,339 | $561,613 | N/A | $297,000 |
| 5-Year CAGR | N/A | N/A | N/A | 5.4% |
| Avg Rent | $1,778 | $1,810 | N/A | - |
| Cap Rate | 4.2% | 2.7% | - | - |
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 78705 (Austin, TX). Anonymous, moderated, never written by AI.
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Property managers serving Travis County
Manage rentals here? List your business →512-Society Property Management provides single-family and multi-family property management services across North Austin and Round Rock since 2005. summary from their website
Darwin Homes offers tech-driven property management services, making renting easy with 24/7 support, smart locks for viewings, and assistance with moving and utility setup. summary from their website
Guest Haus Property Management offers Airbnb and vacation rental management services in Austin. 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 | $330,339 |
| Monthly Rent | $1,778 |
| Price-to-Rent | 15.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.5% |
| Cap Rate | 4.2% |
| 5-Year IRR | 0.8% |
📈 Home Appreciation
| 1-Year | -3.9% ▼ |
| 3-Year CAGR | -4.7% ▼ |
| 5-Year CAGR | -3.4% ▼ |
| 10-Year CAGR | +1.0% ▲ |
🏠 Rent Trends
| 1-Year | -3.2% ▼ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | +2.1% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.2%). 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 78705
Population: 32,937
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 78705
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
GOVALLE EL
BLACKSHEAR EL
MARTIN MIDDLE
OAK SPRINGS EL
ZAVALA EL
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
Investor Insight: With 17,729 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Austin, TX good for house hacking?
Austin, TX offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,778/mo rent level.
Is rental property easy to operate in Austin, TX?
TX law landlord-friendly for landlords, and Austin inherits those rules. Investors should still review local ordinances for rental licensing.
How does Austin, TX rate as a rental market?
Investors tracking Austin, TX will find a 3.0/5 rating supported by $330K median home values and $1,778/mo rents. That profile suits long-term holders targeting measured returns.
How much rent can I charge in Austin, TX?
Rental rates in Austin, TX average $1,778/mo. Tenant demand and $330K home values make the yield look reasonable by investor standards.
Is it easy to find good tenants in Austin, TX?
Tenant quality in Austin, TX ranks as solid. Landlords generally report reliable occupancy at market rents of $1,778/mo.
You know 78705 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78705 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 78705 ranks in Austin-Round Rock-Georgetown, TX
Every ZIP in this metro, ranked. Free.
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