Real Estate Investing in Austin, Texas (78721)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78721 (Austin, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Declining values: -2.5% 5-year CAGR — values have moved lower.
What’s happening in Austin, TX (78721)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78721 Austin
The 78721 ZIP covers a section of Austin that demands careful diligence. Prices near $418K look accessible, but the work to make a deal cash flow is real.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 78721 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within TX, ZIP 78721 trails on several market indicators that neighboring Travis County submarkets outperform. The gap is real and substantial enough to shape underwriting.
The demographic picture in 78721 includes headwinds that any investor should price in. Income distribution skews lower than Austin averages, and tenant stability requires active management.
trends toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78721
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $411,111 | $1,900 | 3.3% | +3.7% | $205,556 |
| 3BR | $489,819 | $2,410 | 3.5% | +2.9% | $163,273 |
| 4BR | $563,218 | $2,830 | 3.6% | +3.3% | $140,804 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78721 Compare?
| Metric | 78721 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $418,488 | $561,613 | N/A | $297,000 |
| 5-Year CAGR | N/A | N/A | N/A | 5.4% |
| Avg Rent | $1,870 | $1,810 | N/A | - |
| Cap Rate | 3.5% | 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 78721 (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 | $418,488 |
| Monthly Rent | $1,870 |
| Price-to-Rent | 18.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 0.9% |
📈 Home Appreciation
| 1-Year | -2.1% ▼ |
| 3-Year CAGR | -5.5% ▼ |
| 5-Year CAGR | -2.5% ▼ |
| 10-Year CAGR | +4.7% ▲ |
🏠 Rent Trends
| 1-Year | -5.1% ▼ |
| 3-Year CAGR | -3.5% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.5%). 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 78721
Population: 10,728
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 78721
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
GOVALLE EL
BLACKSHEAR EL
GENERAL MARSHALL MIDDLE
MARTIN MIDDLE
OAK SPRINGS 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 5,732 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much does a house cost in Austin, TX?
Homes in Austin, TX typically sell near $418K. Prices have moved at a 0.0% 5-year CAGR, which reliable long-term demand.
Are tenants stable in Austin, TX?
Working renters make up the core of the Austin, TX tenant base. The pool is reasonable for investors targeting long-term holds.
How do experienced investors play Austin, TX?
The best-fit strategy in Austin, TX is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
How strict are landlord regulations in Austin, TX?
Austin, TX operates under TX law, which is landlord-friendly overall for landlords. Expect steady treatment in typical lease and eviction cases.
Is Austin in TX worth investing in?
Investors tracking Austin, TX will find a 2.0/5 rating supported by $418K median home values and $1,870/mo rents. That profile suits long-term holders targeting even-keeled returns.
You know 78721 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78721 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 78721 ranks in Austin-Round Rock-Georgetown, TX
Every ZIP in this metro, ranked. Free.
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