Real Estate Investing in Houston, Texas (77038)
Should you buy in 77038 (Houston, TX)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Elevated poverty: 20.4% poverty rate — can affect rent collection.
What’s happening in Houston, TX (77038)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 77038 Houston
ZIP 77038 inside Harris County looks affordable on the surface — median value of $221K — but the discount exists for reasons that a careful buyer should understand before committing.
Rent of $1,623/mo on a $221K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 77038 sits below the stated 0.0% once reality is priced in.
In the broader TX picture, 77038 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
The 77038 ZIP's population of 31,271 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reports the need for careful underwriting.
Strategically, 77038 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Houston:
Property Strategy for 77038
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $118,772 | $1,430 | 8.7% | +6.0% | $59,386 |
| 3BR | $207,997 | $1,920 | 6.6% | +5.7% | $69,332 |
| 4BR | $239,400 | $2,400 | 7.2% | +5.7% | $59,850 |
| 5BR | $272,278 | — | — | +5.9% | $54,456 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 77038 Compare?
| Metric | 77038 | Houston | Houston-The Woodlands-Sugar Land, TX | Texas |
|---|---|---|---|---|
| Home Value | $220,799 | $319,536 | N/A | $297,000 |
| 5-Year CAGR | 4.5% | 3.5% | N/A | 5.4% |
| Avg Rent | $1,623 | $1,549 | N/A | - |
| Cap Rate | 5.7% | 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 77038 (Houston, TX). Anonymous, moderated, never written by AI.
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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 | $220,799 |
| Monthly Rent | $1,623 |
| Price-to-Rent | 11.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.8% |
| Cap Rate | 5.7% |
| 5-Year IRR | 10.2% |
📈 Home Appreciation
| 1-Year | -0.8% ▼ |
| 3-Year CAGR | +0.2% ▲ |
| 5-Year CAGR | +4.5% ▲ |
| 10-Year CAGR | +6.3% ▲ |
🏠 Rent Trends
| 1-Year | +18.2% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (5.7%). 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 77038
Population: 31,271
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 77038
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.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How do home values compare in Houston, TX?
In Houston, TX the median home value sits at $221K. Against the broader TX market, that reads as reasonable for most investors.
Is house hacking profitable in Houston, TX?
House hacking in Houston, TX is reasonable to execute. Prices around $221K and rents of $1,623/mo solid owner-occupant economics.
What is the renter demographic in Houston, TX?
Tenant quality in Houston, TX ranks as solid. Landlords generally report even-keeled occupancy at market rents of $1,623/mo.
Are eviction rules reasonable in Houston, TX?
Houston, TX falls under TX landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
How does Houston, TX rate as a rental market?
Houston, TX rates 3.0/5 for investability. With median values at $221K and rents near $1,623/mo, the market offers reasonable fundamentals for rental investors.
See what 77038 really looks like for investors
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