Real Estate Investing in Houston, Texas (77086)
Should you buy in 77086 (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.
No major risk flags on the data we track.
What’s happening in Houston, TX (77086)?
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Market Analysis: 77086 Houston
The 77086 ZIP covers a section of Houston that demands careful diligence. Prices near $221K look accessible, but the work to make a deal cash flow is real.
On the rental side, the numbers look inviting — $221K purchase price, 0.0% nominal cap — the work to hit that pro forma in 77086 is substantial and deserves full respect.
Put differently, 77086 offers a low basis, the region around Houston has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Who lives in 77086 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. durable returns are possible in 77086, 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 Houston:
Property Strategy for 77086
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $149,765 | $1,400 | 6.7% | +6.4% | $74,882 |
| 3BR | $210,450 | $1,880 | 6.4% | +5.9% | $70,150 |
| 4BR | $240,797 | $2,350 | 7.0% | +6.2% | $60,199 |
| 5BR | $273,640 | — | — | +6.1% | $54,728 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 77086 Compare?
| Metric | 77086 | Houston | Houston-The Woodlands-Sugar Land, TX | Texas |
|---|---|---|---|---|
| Home Value | $220,542 | $319,536 | N/A | $297,000 |
| 5-Year CAGR | 4.5% | 3.5% | N/A | 5.4% |
| Avg Rent | $1,322 | $1,549 | N/A | - |
| Cap Rate | 4.7% | 4.5% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 77086 (Houston, TX). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $220,542 |
| Monthly Rent | $1,322 |
| Price-to-Rent | 13.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.2% |
| Cap Rate | 4.7% |
| 5-Year IRR | 9.2% |
📈 Home Appreciation
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | 0.0% ▼ |
| 5-Year CAGR | +4.5% ▲ |
| 10-Year CAGR | +6.3% ▲ |
🏠 Rent Trends
| 1-Year | -7.8% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (4.7%). 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 77086
Population: 28,623
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 77086
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
KAISER EL
KLENK EL
CONLEY EL
GRAY EL
GREENWOOD FOREST 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
Frequently Asked Questions
What kind of market is Houston, TX for investors?
Houston, TX rates 3.0/5 for investability. With median values at $221K and rents near $1,322/mo, the market offers reasonable fundamentals for rental investors.
Are homes affordable in Houston, TX?
Typical homes in Houston, TX go for around $221K. The 5-year CAGR of 0.0% consistent price movement.
Where do rents currently stand in Houston, TX?
Expect rents around $1,322/mo per month in Houston, TX. With home values at $221K, the yield math works out to reasonable levels for rental investors.
What are vacancy rates like in Houston, TX?
Houston, TX carries elevated vacancy risk. Expect steady absorption at market rents of $1,322/mo.
Which investment style suits Houston, TX?
In Houston, TX the resilient play is typically careful cash-flow rentals with hands-on management. The combination of $221K prices and $1,322/mo rents suits that approach.
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