Real Estate Investing in Houston, Texas (77005)
Should you buy in 77005 (Houston, 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 price-to-rent: Price-to-rent ratio 66.5 — hard to cash-flow at these prices.
What’s happening in Houston, TX (77005)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 77005 Houston
ZIP 77005 in Houston, TX carries a robust set of headwinds. Home values near $1.7M and rents of $2,140/mo sit inside a market where underwriting has to be tight.
Distressed markets are won on execution, not on spreadsheets. ZIP 77005 reports the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
The gap between 77005 and stronger Houston ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Meanwhile, 28,231 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The right play in 77005 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 Houston:
Property Strategy for 77005
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $183,454 | $1,980 | 7.8% | -2.3% | $183,454 |
| 2BR | $638,471 | $2,360 | 2.7% | +5.0% | $319,236 |
| 3BR | $1,227,648 | $3,170 | 1.9% | +6.0% | $409,216 |
| 4BR | $1,882,929 | $3,960 | 1.5% | +6.5% | $470,732 |
| 5BR | $2,530,926 | — | — | +6.4% | $506,185 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 77005 Compare?
| Metric | 77005 | Houston | Houston-The Woodlands-Sugar Land, TX | Texas |
|---|---|---|---|---|
| Home Value | $1,706,721 | $319,536 | N/A | $297,000 |
| 5-Year CAGR | 6.3% | 3.5% | N/A | 5.4% |
| Avg Rent | $2,140 | $1,549 | N/A | - |
| Cap Rate | 1.0% | 4.5% | - | - |
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 77005 (Houston, TX). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 77005 (Houston, TX)?
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Property managers serving Harris County
Manage rentals here? List your business →SBB Community Management provides Texas HOA management services, including financial management, property maintenance, and technology solutions, serving Dallas, Fort Worth, and Houston since 1974. summary from their website
KPM Property Management offers end-to-end solutions including pre-acquisition due diligence, on-site property management, and development of townhomes in the Houston area. summary from their website
SBB Community Management provides Texas HOA management services for homeowners associations, condominium associations, and master-planned communities across Dallas, Fort Worth, and Houston. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $1,706,721 |
| Monthly Rent | $2,140 |
| Price-to-Rent | 66.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 1.5% |
| Cap Rate | 1.0% |
| 5-Year IRR | 7.3% |
📈 Home Appreciation
| 1-Year | +5.9% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +6.3% ▲ |
| 10-Year CAGR | +4.2% ▲ |
🏠 Rent Trends
| 1-Year | +4.3% ▲ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +2.8% ▲ |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (1.0%). 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 77005
Population: 28,231
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 77005
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
GREGORY-LINCOLN ED CTR
CONDIT EL
ELLA J BAKER MONTESSORI SCHOOL
LONGFELLOW EL
POE 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 8,357 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How quickly do rentals get leased in Houston, TX?
Rental vacancy in Houston, TX is elevated. Investors should budget normal turnover but not chronic empty units.
How landlord-friendly is Houston, TX?
Rental owners in Houston, TX deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
What investment strategy works best in Houston, TX?
For Houston, TX, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Is Houston, TX good for house hacking?
For house hackers, Houston, TX is a tougher. The $2,140/mo rent on a unit helps defray the mortgage on a $1.7M property.
How much do tenants pay in Houston, TX?
Houston, TX rentals go for roughly $2,140/mo a month. That puts gross yield in solid territory relative to $1.7M acquisition costs.
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