Real Estate Investing in Houston, Texas (77089)
Should you buy in 77089 (Houston, TX)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
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 (77089)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 77089 Houston
The 77089 ZIP in Houston, TX is a local-operator market. Outside capital chasing a $275K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 77089 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
The gap between 77089 and stronger Houston ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
A substantial renter share of 32% in 77089 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
looks to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Houston:
Property Strategy for 77089
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $77,296 | $1,400 | 13.0% | +5.6% | $77,296 |
| 2BR | $158,130 | $1,660 | 7.6% | +4.7% | $79,065 |
| 3BR | $241,184 | $2,230 | 6.7% | +4.8% | $80,395 |
| 4BR | $317,170 | $2,780 | 6.3% | +5.3% | $79,293 |
| 5BR | $462,459 | — | — | +6.2% | $92,492 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 77089 Compare?
| Metric | 77089 | Houston | Houston-The Woodlands-Sugar Land, TX | Texas |
|---|---|---|---|---|
| Home Value | $274,547 | $319,536 | N/A | $297,000 |
| 5-Year CAGR | 3.9% | 3.5% | N/A | 5.4% |
| Avg Rent | $1,472 | $1,549 | N/A | - |
| Cap Rate | 4.2% | 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 77089 (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 | $274,547 |
| Monthly Rent | $1,472 |
| Price-to-Rent | 15.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.4% |
| Cap Rate | 4.2% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | +0.8% ▲ |
| 3-Year CAGR | +1.1% ▲ |
| 5-Year CAGR | +3.9% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 Rent Trends
| 1-Year | +1.8% ▲ |
| 3-Year CAGR | +2.5% ▲ |
| 5-Year CAGR | +5.1% ▲ |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (4.2%). 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 77089
Population: 56,607
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 77089
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
Investor Insight: With 27,511 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Houston, TX a good place for real estate investing?
Investors tracking Houston, TX will find a 3.0/5 rating supported by $275K median home values and $1,472/mo rents. That profile suits long-term holders targeting even-keeled returns.
Do rentals sit vacant long in Houston, TX?
Vacancy risk in Houston, TX is elevated. That supports predictable cash flow for typical rental holds.
Is Houston, TX better for rentals, flips, or BRRRR?
Most investors in Houston, TX run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
What does house hacking look like in Houston, TX?
The house hack math a challenging in Houston, TX. Owner-occupant buyers benefit from the $1,472/mo rents and $275K home values.
What is the average monthly rent in Houston, TX?
Rents in Houston, TX run near $1,472/mo. Compared with median home prices of $275K that produces solid gross yields for typical rentals.
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