Laredo
Investment Analysis

Laredo, TX
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

Share:
60
Investment Score
Buy
Cap Rate (Est.)
2.2%
Gross Yield
3.7%
P/R Ratio
16.6x
YoY Growth
+2.5%
Median Home Price
$282,999
Average Rent (1BR)
$881/mo
Median Income
$60,720
Population
252,974

Investment Breakdown

50
Value Score
75
Growth Score
54
Safety Score
62
Afford Score

Laredo has a price-to-rent ratio of 16.6x, which indicates buying is moderately favorable.

The estimated cap rate of 2.2% is below average, typical of appreciation-focused markets.

Year-over-year price growth of +2.5% indicates stable market conditions.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $881
Annual Gross $10,572

Est. Monthly Expenses

Property Tax (~1.5%) -$354
Insurance (~0.5%) -$118
Maintenance (~1%) -$236
Est. Net Cash Flow $174/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Laredo Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$217K2027$222Kโ–ฒ 2.4%2028$226Kโ–ฒ 4.3%20232024Now
$238K$198K
Current
$283K
2026
Projected
$222K
โ†‘ 2.4% by 2027
Projected
$226K
โ†‘ 4.3% by 2028
5yr CAGR:+3.0%
Confidence:Moderate
Rยฒ:0.60
โ–ผ

For those evaluating a Laredo housing market forecast through 2028, the city appears poised for steady, moderate growth rather than dramatic shifts. Currently, the median home price sits at $216,919, with annual appreciation holding at 2.2%โ€”a pace that aligns with its five-year CAGR of 3.2%. This stability is underpinned by a Price-to-Rent Ratio of 18.4x, which is nearly in line with the national average, suggesting that while buying isn't a screaming bargain, it's not prohibitively expensive relative to renting either. The market's temperature reads 53/100, indicating a balanced environment where neither buyers nor sellers hold a decisive edge.

When asking will Laredo home prices drop, the underlying fundamentals suggest a "no" answer, barring a major economic shock. Laredo's economy is heavily anchored to international trade via its sprawling port of entry, which provides a unique buffer against domestic downturns. This stability, combined with a 5-year price change of 17.5% and a strong Risk Grade: A-, points to resilience. Affordability remains a key draw, with median rent at just $881/month, attracting a steady stream of residents and keeping demand consistent. Properties are moving in 72 days on market, indicating healthy transaction velocity without the frenzy of overheated markets.

Looking ahead to Laredo real estate Laredo 2027, the forecast hinges on continued cross-border commerce and population stability. The NEUTRAL buy/rent verdict reflects that while prices are unlikely to fall, explosive growth is also off the table; expect values to gently climb within the recent $184,660 โ€“ $217,358 range. Investors should watch for infrastructure developments or shifts in trade policy that could alter the economic landscape. Ultimately, Laredo presents a low-volatility, income-oriented market suitable for patient capital, rather than a speculative play. The most probable scenario is a slow, methodical appreciation that mirrors its historical performance.

Projected Cap Rate (2027)
2.9%
5yr CAGR
+3%

Job Market

Unemployment 4.0%
National avg: 3.7%
Job Growth (YoY) +3.2%

Healthcare

70
Score
Good

Risk Factors

Low Risk Profile

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 100.0%
Months Supply 10.8
Price Drops 20%
Gone in 2 Wks 9%

Market Position

Affordability Below Avg
Safety Average

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Laredo.

Total ROI
-69%
on $56,600 invested
Annual ROI
-20.7%
compounded
Total Return
-$38,897
appreciation + cashflow
Mo. Cash Flow
-$1,347
year 1 estimate
Equity Growth Over 5 Years
Y166kY276kY386kY496kY5107k
Appreciation
$37,188
Cash Flow
-$76,086
Final Equity
$107,056

* Estimates based on 2.5% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Laredo

Property

Purchase Price$282,999
Monthly Rent$881
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$1,238
Monthly Cash Flow
-$14,855/ year
-26.2%
Cash-on-Cash
0.8%
Cap Rate

Monthly Breakdown

+ Rental Income$881
โˆ’ Mortgage (P&I)$1,431
โˆ’ Property Tax$283
โˆ’ Insurance$125
โˆ’ Maintenance$236
โˆ’ Vacancy Loss$44
= Net Cash Flow-$1,238

Investment Summary

Down Payment
$56,600
Loan Amount
$226,399
Total Monthly Expenses
$2,119
Gross Yield
3.7%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026