Real Estate Investing in Lexington, Texas (78947)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78947 (Lexington, TX)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 15.7% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 34.7 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Lexington, TX (78947)?
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Market Analysis: 78947 Lexington
In practical terms, ZIP 78947 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $427K median. It rewards specialists, not generalists.
Distressed markets are won on execution, not on spreadsheets. ZIP 78947 stands at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 78947 among TX's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Resident income in 78947 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategy in 78947 is an operator game, not a passive one. Meanwhile, entry prices of $427K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Lexington:
Market Trends
Home Value History (with trend line)
📊 How Does 78947 Compare?
| Metric | 78947 | Lexington | Texas |
|---|---|---|---|
| Home Value | $427,440 | $427,440 | $297,000 |
| 5-Year CAGR | 4.4% | 4.4% | 5.4% |
| Avg Rent | $1,026 | $1,026 | - |
| Cap Rate | 1.9% | 1.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78947 (Lexington, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $427,440 |
| Monthly Rent | $1,026 |
| Price-to-Rent | 34.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.9% |
| Cap Rate | 1.9% |
| 5-Year IRR | 6.2% |
📈 Home Appreciation
| 1-Year | +4.9% ▲ |
| 3-Year CAGR | +3.4% ▲ |
| 5-Year CAGR | +4.4% ▲ |
| 10-Year CAGR | +7.6% ▲ |
🏠 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 (1.9%). 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 78947
Population: 5,110
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 78947
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
What kind of market is Lexington, TX for investors?
Lexington, TX rates 3.0/5 for investability. With median values at $427K and rents near $1,026/mo, the market offers reasonable fundamentals for rental investors.
How deep is the rental pool in Lexington, TX?
Working renters make up the core of the Lexington, TX tenant base. The pool is reasonable for investors targeting long-term holds.
What kind of vacancy should I budget for in Lexington, TX?
Rental vacancy in Lexington, TX is elevated. Investors should budget normal turnover but not chronic empty units.
Where do home prices stand in Lexington, TX?
Typical homes in Lexington, TX go for around $427K. The 5-year CAGR of 0.0% stable price movement.
What type of investing works in Lexington, TX?
Most investors in Lexington, TX run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
You know 78947 now. You don’t know where it ranks.
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