Real Estate Investing in Kemah, Texas (77565)

Galveston County • Population: 6,583 • Data updated: June 2026

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Should you buy in 77565 (Kemah, TX)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (59/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
2 flags
  • Elevated vacancy: 11.2% vacancy may signal weakening demand.
  • 1-year downturn: Values declined 3.3% in the last year.

What’s happening in Kemah, TX (77565)?

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3.0/ 5

Investability

Overall investment appeal

2.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $365,641
Avg Monthly Rent $1,583
1% Rule ✗ Does Not Meet
Median Income $81,921
% Renters 39.7%

Market Analysis: 77565 Kemah

ZIP 77565 in Kemah, TX carries a solid set of headwinds. Home values near $366K and rents of $1,583/mo sit inside a market where underwriting has to be tight.

Rent of $1,583/mo on a $366K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 77565 sits below the stated 0.0% once reality is priced in.

The gap between 77565 and stronger Kemah ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.

A significant renter share of 40% in 77565 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.

New investors are better served looking at Kemah's stable or hybrid ZIPs before stepping into 77565. The learning curve here is expensive when the lesson is wrong.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.49% as of Jun 25 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Kemah:

C+ Average
Buy Confidence Score: 63/100
Affordability
15/25
Appreciation
14/25
Stability
9/20
Timing
10/15
Rental backup
15/15
Affordability
Moderate
Homes cost 4.5× the median income
Value Trend
Declining (-3.3%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,583/mo if you need to move
Market Conditions
COOL
More inventory, negotiating room for buyers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
❄️
COOL MARKET
Houston-The Woodlands-Sugar Land, TX Metro Area
More inventory, negotiating room for buyers
71 days
Average time to sell
Slow
9.3%
Listings with price cuts
Few Cuts
0.0%
Sale price vs asking
Below Ask
0.0%
Income needed for mortgage
Affordable
📅 Market conditions as of June 20, 2026 — updated weekly from Houston-The Woodlands-Sugar Land, TX metro data
🏠

Property Strategy for 77565

Which property type performs best in this market?

Best for Cash Flow
2BR
5.6% cap rate
Best for Appreciation
4BR
+4.9% 5yr CAGR
Best Overall Value
4BR
$120,270/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
2BR $246,673 $1,910 5.6% +2.4% $123,336
3BR $362,728 $2,570 5.1% +4.5% $120,909
4BR $481,081 $3,200 4.8% +4.9% $120,270

Market Trends

Home Value History (with trend line)

$406K$359K$312K$265K$218K$170KMay 2006May 2016May 2026

Rent History (with trend line)

$1,710$1,635$1,560$1,485$1,411$1,336Nov 2021Feb 2024May 2026

📊 How Does 77565 Compare?

Metric 77565 Kemah Houston-The Woodlands-Sugar Land, TX Texas
Home Value $365,641 $365,641 N/A $297,000
5-Year CAGR 2.7% 2.7% N/A 5.4%
Avg Rent $1,583 $1,583 N/A -
Cap Rate 3.4% 3.4% - -
💡 Why Invest in 77565? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

A healthy rental market with 40% renter-occupied households ensures tenant availability.

📊 See where this ZIP ranks in our Best-of lists →
A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Free to search · investor plans from $19/mo

Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 77565 (Kemah, TX). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
3.4%
Low
5yr Growth
+2.7%
Slow

📊 Market Snapshot

Home Value $365,641
Monthly Rent $1,583
Price-to-Rent 19.3:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 5.2%
Cap Rate 3.4%
5-Year IRR 6.1%

📈 Home Appreciation

1-Year -3.3% ▼
3-Year CAGR -1.0% ▼
5-Year CAGR +2.7% ▲
10-Year CAGR +4.0% ▲

🏠 Rent Trends

1-Year -5.2% ▼
3-Year CAGR -1.7% ▼
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 3.4%  |  30yr Rate: 6.5%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (3.4%). 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.

Vacancy
11.2%
Moderate risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+2.7%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 77565

Population: 6,583

💰 Median Household Income
$81,921
This area
$81,921
State
$70,593
USA
$74,580
🏠 Renter Occupied
39.7%
This area
39.7%
State
29.5%
USA
34.0%
💼 Unemployment Rate
4.0%
This area
4.0%
State
-25.4%
USA
3.7%
🎓 College Educated
37.1%
This area
37.1%
State
-5.8%
USA
33.7%
👤 Median Age
48.4 years
This area
48.4 years
State
-3.7 years
USA
38.9 years
🏚️ Vacancy Rate
11.2%
This area
11.2%
State
18.3%
USA
10.5%
👥 Population by Ethnicity
White 78.4%
Other/Mixed 14.6%
Hispanic/Latino 11.7%
Black/African American 5.2%
Asian 1.8%
👶 Under 18
17.7%
This area
17.7%
USA
22.0%
👴 65 and Over
20.2%
This area
20.2%
USA
17.3%
📊 Poverty Rate
6.5%
This area
6.5%
USA
11.5%

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 77565

B Avg School Grade
1 Schools
15.6:1 Avg Class Size
$12,180 Avg Per Pupil

Schools in This ZIP Code

B Good

LAVACE STEWART EL

📚 Pre-K – 05 Elementary
👥
713 Students
👨‍🏫
15.6:1 Class Size
💰
$12,180 Per Student
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

7 Nearby 32,154 Off-Campus Students
C+
University of Houston-Clear Lake
8,211 students · 5.0 mi
C
Paul Mitchell the School-Clear Lake
129 students · 5.7 mi
D
Remington College-Houston Southeast Campus
65 students · 5.8 mi
C+
San Jacinto Community College
31,494 students · 9.7 mi
C+
College of the Mainland
4,961 students · 10.1 mi
D
Texas Chiropractic College Foundation Inc
267 students · 11.1 mi
C
Lee College
8,143 students · 13.7 mi

Investor Insight: With 32,154 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

Should investors worry about vacancy in Kemah, TX?

Vacancy risk in Kemah, TX is elevated. That supports even-keeled cash flow for typical rental holds.

What do rentals go for in Kemah, TX?

Rents in Kemah, TX run near $1,583/mo. Compared with median home prices of $366K that produces solid gross yields for typical rentals.

Is Kemah, TX better for rentals, flips, or BRRRR?

The best-fit strategy in Kemah, TX is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.

Is TX a landlord-friendly state?

TX law landlord-friendly for landlords, and Kemah inherits those rules. Investors should still review local ordinances for rental licensing.

What kind of market is Kemah, TX for investors?

Kemah, TX rates 3.0/5 for investability. With median values at $366K and rents near $1,583/mo, the market offers reasonable fundamentals for rental investors.

See what 77565 really looks like for investors

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