Real Estate Investing in Austin, Texas (78735)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78735 (Austin, 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.
- Declining values: -0.3% 5-year CAGR — values have moved lower.
- High price-to-rent: Price-to-rent ratio 40.5 — hard to cash-flow at these prices.
What’s happening in Austin, TX (78735)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78735 Austin
This part of Travis is not an easy win. The 78735 ZIP clocks in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Distressed markets are won on execution, not on spreadsheets. ZIP 78735 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 78735 among TX's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
A robust renter share of 54% in 78735 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Experienced landlords with local relationships tend to find 78735 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78735
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $402,660 | $2,210 | 4.0% | +3.0% | $201,330 |
| 3BR | $660,207 | $2,800 | 3.1% | +4.6% | $220,069 |
| 4BR | $1,002,718 | $3,290 | 2.4% | +6.3% | $250,680 |
| 5BR | $1,992,754 | — | — | +9.6% | $398,551 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78735 Compare?
| Metric | 78735 | Austin | Texas |
|---|---|---|---|
| Home Value | $829,910 | $561,613 | $297,000 |
| 5-Year CAGR | N/A | N/A | 5.4% |
| Avg Rent | $1,708 | $1,810 | - |
| Cap Rate | 1.6% | 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 78735 (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 | $829,910 |
| Monthly Rent | $1,708 |
| Price-to-Rent | 40.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.5% |
| Cap Rate | 1.6% |
| 5-Year IRR | 1.3% |
📈 Home Appreciation
| 1-Year | +1.8% ▲ |
| 3-Year CAGR | -1.5% ▼ |
| 5-Year CAGR | -0.3% ▼ |
| 10-Year CAGR | +4.9% ▲ |
🏠 Rent Trends
| 1-Year | -2.9% ▼ |
| 3-Year CAGR | -3.4% ▼ |
| 5-Year CAGR | -1.5% ▼ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.6%). 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 78735
Population: 20,112
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 78735
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.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Is real estate in Austin, TX a good investment right now?
With a 2.0/5 investability score, Austin, TX ranks as a solid market for rental property investors. Median prices of $830K and rents of $1,708/mo drive the underlying numbers.
Which investment style suits Austin, TX?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Austin, TX. The numbers - $830K homes against $1,708/mo rents - support that play.
Does Austin, TX favor landlords or tenants?
Landlord-friendliness in Austin, TX is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
Is it easy to find good tenants in Austin, TX?
The tenant pool in Austin, TX is solid, supported by local employment and population fundamentals. Rents of $1,708/mo are well-absorbed by the market.
How tight is the rental market in Austin, TX?
Rental vacancy in Austin, TX is elevated. Investors should budget normal turnover but not chronic empty units.
You know 78735 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 78735 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.
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