Real Estate Investing in Hondo, Texas (78861)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78861 (Hondo, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.
- Elevated vacancy: 10.7% vacancy may signal weakening demand.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Hondo, TX (78861)?
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Market Analysis: 78861 Hondo
ZIP 78861 inside Medina County looks affordable on the surface — median value of $267K — but the discount exists for reasons that a careful buyer should understand before committing.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $267K asset, 78861 is the wrong submarket. If the plan prices in friction, the yield can still work.
Within TX, ZIP 78861 trails on several market indicators that neighboring Medina County submarkets outperform. The gap is real and durable enough to shape underwriting.
The demographic picture in 78861 includes headwinds that any investor should price in. Income distribution skews lower than Hondo averages, and tenant stability requires active management.
leans 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 Hondo:
Property Strategy for 78861
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $213,536 | $1,280 | 4.3% | +6.3% | $106,768 |
| 3BR | $300,086 | $1,690 | 4.1% | +5.9% | $100,029 |
| 4BR | $399,910 | $1,690 | 3.0% | +6.4% | $99,977 |
Market Trends
Home Value History (with trend line)
📊 How Does 78861 Compare?
| Metric | 78861 | Hondo | San Antonio-New Braunfels, TX | Texas |
|---|---|---|---|---|
| Home Value | $267,029 | $267,029 | N/A | $297,000 |
| 5-Year CAGR | 1.7% | 1.7% | N/A | 5.4% |
| Avg Rent | $1,152 | $1,152 | N/A | - |
| Cap Rate | 3.4% | 3.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78861 (Hondo, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $267,029 |
| Monthly Rent | $1,152 |
| Price-to-Rent | 19.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 5.1% |
📈 Home Appreciation
| 1-Year | +0.7% ▲ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +1.7% ▲ |
| 10-Year CAGR | +5.0% ▲ |
🏠 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 (3.4%). 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 78861
Population: 13,715
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 78861
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
How expensive is real estate in Hondo, TX?
Expect median prices around $267K in Hondo, TX. The market has run at a 0.0% 5-year CAGR, so entry costs have been even-keeled.
What do landlords charge for rent in Hondo, TX?
Average rent in Hondo, TX is approximately $1,152/mo per month. Against $267K home values that yields a reasonable rent-to-price ratio.
Do rentals sit vacant long in Hondo, TX?
Vacancy in Hondo, TX is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $1,152/mo.
Are eviction rules reasonable in Hondo, TX?
Landlord-friendliness in Hondo, TX is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How deep is the rental pool in Hondo, TX?
Hondo, TX offers a consistent renter base at the $1,152/mo rent level. Tenant turnover is reasonable for well-managed properties.
You know 78861 now. You don’t know where it ranks.
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How 78861 ranks in San Antonio-New Braunfels, TX
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