Real Estate Investing in Round Top, Texas (78954)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 78954 (Round Top, TX)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 43.3% of homes vacant — above national norms.
- 1-year downturn: Values declined 4.4% in the last year.
- High price-to-rent: Price-to-rent ratio 85.8 — 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 Round Top, TX (78954)?
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Market Analysis: 78954 Round Top
In practical terms, ZIP 78954 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $1.1M median. It rewards specialists, not generalists.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $1.1M asset, 78954 is the wrong submarket. If the plan prices in friction, the yield can still work.
Regionally, 78954 sits on the difficult end of the TX spectrum. The a viable market for read — for disciplined operators — is that pricing reflects the difficulty.
Resident income in 78954 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Distressed ZIPs reward experience. significant returns are possible in 78954, 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 Round Top:
Market Trends
Home Value History (with trend line)
📊 How Does 78954 Compare?
| Metric | 78954 | Round Top | Texas |
|---|---|---|---|
| Home Value | $1,139,322 | $1,139,322 | $297,000 |
| 5-Year CAGR | 4.1% | 4.1% | 5.4% |
| Avg Rent | $1,107 | $1,107 | - |
| Cap Rate | 0.8% | 0.8% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 78954 (Round Top, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $1,139,322 |
| Monthly Rent | $1,107 |
| Price-to-Rent | 85.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 1.2% |
| Cap Rate | 0.8% |
| 5-Year IRR | 4.9% |
📈 Home Appreciation
| 1-Year | -4.4% ▼ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +4.1% ▲ |
| 10-Year CAGR | +9.3% ▲ |
🏠 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 (0.8%). 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 78954
Population: 1,378
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 78954
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
Is Round Top in TX worth investing in?
The 3.0/5 investability rating in Round Top, TX reflects its $1.1M prices and $1,107/mo rents. Investors generally consider it a solid option within TX.
Is rental property easy to operate in Round Top, TX?
Round Top, TX falls under TX landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
What investment strategy works best in Round Top, TX?
The best-fit strategy in Round Top, TX is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
What is the renter demographic in Round Top, TX?
The tenant pool in Round Top, TX is solid, supported by local employment and population fundamentals. Rents of $1,107/mo are well-absorbed by the market.
What do landlords charge for rent in Round Top, TX?
Average rent in Round Top, TX is approximately $1,107/mo per month. Against $1.1M home values that yields a reasonable rent-to-price ratio.
You know 78954 now. You don’t know where it ranks.
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