Sullivan City is home to the best residential real estate investment market in Texas.
The 78595 zip code in Sullivan City presents the greatest opportunity for the best real estate investments among the 10,392 individual real estate markets in Texas we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Texas
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Sullivan City | 100 | 2.1 | 58% |
| 2 | Weslaco | 90.6 | 2.8 | 40% |
| 3 | Amarillo | 89.7 | 2.6 | 42% |
| 4 | San Angelo | 89.5 | 2.9 | 36% |
| 5 | Burkburnett | 89.4 | 2.5 | 37% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Texas.
1. Sullivan City
We've identified the 78595 zip code in Sullivan City as Texas's best real estate investment market. Here's why.
🔎 Key data about Sullivan City (78595)
| Data point | Value | Rank in state (of 10,392 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $125,527[1] | 49th lowest |
| Five-year appreciation | 58%[2] | 6th highest |
| Household income | $58,846[3] | 714th highest |
| Affordability ratio | 2.1 | 27th most affordable |
| Five-year population growth | 2.7%[4] | 322nd highest |
| Unemployment rate | 6.4%[5] | 15th lowest |
| Property taxes | $1,668[6] | 108th lowest |
| Educational attainment | 11%[7] | 437th highest |
Sullivan City (zip code 78595) is the best residential real estate investment market in Texas. It has the 6th highest property value appreciation among markets we evaluated, with a 58% appreciation of the typical property over the last five years.
Sullivan City is the 27th most affordable market among the 10,392 Texas markets we evaluated, with an affordability ratio of 2.1.
2. Weslaco
The 78596 zip code in Weslaco is the runner-up spot for the best real estate investments in Texas.
🔎 Key data about Weslaco (78596)
| Data point | Value | Rank in state (of 10,392 markets) |
|---|---|---|
| InvestScore | 90.6 | 2nd highest |
| Typical property value | $162,852[1] | 123rd lowest |
| Five-year appreciation | 40%[2] | 77th highest |
| Household income | $58,411[3] | 721st highest |
| Affordability ratio | 2.8 | 127th most affordable |
| Five-year population growth | 1.5%[4] | 471st highest |
| Unemployment rate | 6.4%[5] | 15th lowest |
| Property taxes | $1,540[6] | 82nd lowest |
| Educational attainment | 21%[7] | 337th highest |
The 78596 zip code in Weslaco features a typical property value of $162,852, the 123rd lowest in the state.
Property values have appreciated 40% over the past five years, the 77th highest increase among evaluated markets in the state. Weslaco homes have an affordability ratio of 2.8, the 127th most affordable in the state.
3. Amarillo
The 79107 zip code in Amarillo comes in at No. 3 in our ranking of the best residential real estate investment markets in Texas.
🔎 Key data about Amarillo (79107)
| Data point | Value | Rank in state (of 10,392 markets) |
|---|---|---|
| InvestScore | 89.7 | 3rd highest |
| Typical property value | $105,862[1] | 24th lowest |
| Five-year appreciation | 42%[2] | 58th highest |
| Household income | $40,671[3] | 933rd highest |
| Affordability ratio | 2.6 | 83rd most affordable |
| Five-year population growth | 0.7%[4] | 572nd highest |
| Unemployment rate | 2.8%[5] | lowest |
| Property taxes | $1,427[6] | 64th lowest |
| Educational attainment | 6.6%[7] | 470th highest |
With a typical property value of $105,862, Amarillo's 79107 zip code features the 24th lowest property values in the state.
Amarillo homes have an affordability ratio of 2.6, the 83rd most affordable among the markets we evaluated.
4. San Angelo
The 76905 zip code in San Angelo ranks No. 4 among Texas's residential real estate investment markets.
🔎 Key data about San Angelo (76905)
| Data point | Value | Rank in state (of 10,392 markets) |
|---|---|---|
| InvestScore | 89.5 | 4th highest |
| Typical property value | $242,966[1] | 409th lowest |
| Five-year appreciation | 36%[2] | 128th highest |
| Household income | $84,712[3] | 128th highest |
| Affordability ratio | 2.9 | 148th most affordable |
| Five-year population growth | 5.1%[4] | 172nd highest |
| Unemployment rate | 2.9%[5] | 2nd lowest |
| Property taxes | $1,805[6] | 137th lowest |
| Educational attainment | 22%[7] | 332nd highest |
Property values in San Angelo's 76905 zip code have seen the 128th highest increase among evaluated markets in the state, with an appreciation of 36% over the past five years.
San Angelo's affordability ratio of 2.9 makes it the 148th most affordable among the 10,392 markets we evaluated.
5. Burkburnett
The 76354 zip code in Burkburnett rounds out our top five residential real estate investment markets in Texas.
🔎 Key data about Burkburnett (76354)
| Data point | Value | Rank in state (of 10,392 markets) |
|---|---|---|
| InvestScore | 89.4 | 5th highest |
| Typical property value | $174,718[1] | 161st lowest |
| Five-year appreciation | 37%[2] | 112th highest |
| Household income | $68,721[3] | 112th highest |
| Affordability ratio | 2.5 | 72nd most affordable |
| Five-year population growth | 1.4%[4] | 480th highest |
| Unemployment rate | 3.5%[5] | 5th lowest |
| Property taxes | $2,369[6] | 262nd lowest |
| Educational attainment | 24%[7] | 308th highest |
Property values in Burkburnett's 76354 zip code rose 37% over the last five years, ranking the city 112th highest among evaluated markets in Texas.
Burkburnett homes have an affordability ratio of 2.5, the 72nd most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Texas.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Texas
To determine the best real estate investments in Texas we evaluated 10,392 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Texas.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
