Real Estate Investing in Amarillo, Texas (79106)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 79106 (Amarillo, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 12.2% of homes vacant — above national norms.
What’s happening in Amarillo, TX (79106)?
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Market Analysis: 79106 Amarillo
The 79106 ZIP in Amarillo, TX is a local-operator market. Outside capital chasing a $171K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $171K asset, 79106 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 79106 and stronger Amarillo ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Demographically, 79106 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The right play in 79106 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Amarillo:
Property Strategy for 79106
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $62,656 | $900 | 10.3% | +9.8% | $62,656 |
| 2BR | $100,152 | $1,100 | 7.9% | +7.4% | $50,076 |
| 3BR | $187,440 | $1,500 | 5.8% | +6.8% | $62,480 |
| 4BR | $265,574 | $1,730 | 4.7% | +6.4% | $66,393 |
| 5BR | $338,691 | — | — | +6.8% | $67,738 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 79106 Compare?
| Metric | 79106 | Amarillo | Amarillo, TX | Texas |
|---|---|---|---|---|
| Home Value | $170,508 | $140,122 | N/A | $297,000 |
| 5-Year CAGR | 5.4% | 5.5% | N/A | 5.4% |
| Avg Rent | $1,125 | $1,170 | N/A | - |
| Cap Rate | 5.2% | 4.7% | - | - |
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 79106 (Amarillo, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $170,508 |
| Monthly Rent | $1,125 |
| Price-to-Rent | 12.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.9% |
| Cap Rate | 5.2% |
| 5-Year IRR | 10.6% |
📈 Home Appreciation
| 1-Year | +5.5% ▲ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +5.4% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 Rent Trends
| 1-Year | +10.8% ▲ |
| 3-Year CAGR | +6.4% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.2%). 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 79106
Population: 27,900
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 79106
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
ARDEN ROAD EL
WEST PLAINS J H
CORONADO EL
PARAMOUNT TERRACE EL
SANBORN 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 3,713 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What type of investing works in Amarillo, TX?
Investors usually favor careful cash-flow rentals with hands-on management in Amarillo, TX. With home values at $171K and rents near $1,125/mo, other strategies can work but produce reliable rather than outsized returns.
What are vacancy rates like in Amarillo, TX?
Amarillo, TX sees elevated vacancy, which is reasonable relative to the broader TX rental market.
What do landlords charge for rent in Amarillo, TX?
Expect rents around $1,125/mo per month in Amarillo, TX. With home values at $171K, the yield math works out to reasonable levels for rental investors.
Is housing expensive in Amarillo, TX?
Amarillo, TX median home values land near $171K. That is reasonable territory for investors looking at $1,125/mo-per-month rentals.
How viable is house hacking in Amarillo, TX?
The house hack math a challenging in Amarillo, TX. Owner-occupant buyers benefit from the $1,125/mo rents and $171K home values.
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How 79106 ranks in Amarillo, TX
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