Real Estate Investing in Austin, Texas (78754)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78754 (Austin, TX)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Declining values: -2.0% 5-year CAGR — values have moved lower.
What’s happening in Austin, TX (78754)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 78754 Austin
Looking more closely, ZIP 78754 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $359K median. It rewards specialists, not generalists.
The investment case in 78754 is significant only for operators who understand what they are buying. A $359K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Regionally, 78754 sits on the difficult end of the TX spectrum. The a viable market for read — for disciplined operators — is that pricing reflects the difficulty.
The 78754 ZIP's population of 31,410 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that stands at the need for careful underwriting.
Distressed ZIPs reward experience. substantial returns are possible in 78754, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Austin:
Property Strategy for 78754
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $342,612 | $2,380 | 5.0% | +4.9% | $114,204 |
| 4BR | $391,814 | $2,800 | 5.1% | +5.4% | $97,953 |
| 5BR | $418,797 | — | — | +5.7% | $83,759 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 78754 Compare?
| Metric | 78754 | Austin | Austin-Round Rock-Georgetown, TX | Texas |
|---|---|---|---|---|
| Home Value | $358,901 | $561,613 | N/A | $297,000 |
| 5-Year CAGR | N/A | N/A | N/A | 5.4% |
| Avg Rent | $1,381 | $1,810 | N/A | - |
| Cap Rate | 3.0% | 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 78754 (Austin, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $358,901 |
| Monthly Rent | $1,381 |
| Price-to-Rent | 21.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 1.0% |
📈 Home Appreciation
| 1-Year | -2.1% ▼ |
| 3-Year CAGR | -4.3% ▼ |
| 5-Year CAGR | -2.0% ▼ |
| 10-Year CAGR | +4.4% ▲ |
🏠 Rent Trends
| 1-Year | -11.0% ▼ |
| 3-Year CAGR | -6.8% ▼ |
| 5-Year CAGR | -2.8% ▼ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). 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 78754
Population: 31,410
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 78754
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
BARRINGTON EL
DOBIE MIDDLE
GRAHAM EL
GUERRERO THOMPSON
HART 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 11,997 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does Austin, TX favor landlords or tenants?
Rental owners in Austin, TX deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is house hacking profitable in Austin, TX?
House hacking works a challenging in Austin, TX. Rents of $1,381/mo against $359K acquisition make the strategy solid for owner-occupants.
Which real estate strategy fits Austin, TX?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Austin, TX. The numbers - $359K homes against $1,381/mo rents - support that play.
How does Austin, TX rate as a rental market?
Austin, TX rates 2.0/5 for investability. With median values at $359K and rents near $1,381/mo, the market offers reasonable fundamentals for rental investors.
How strong is the working-renter base in Austin, TX?
Tenant demand in Austin, TX is solid. The local workforce $1,381/mo rents across most rental classes.
You know 78754 now. You don’t know where it ranks.
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How 78754 ranks in Austin-Round Rock-Georgetown, TX
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