Zip Code 78666

San Marcos, TX • Hays (parts in Caldwell & Guadalupe) County

Real Estate Market Analysis

Q3 2025 Report

$335,000 (Q2 2025)

Median Home Value

~85,000 (2025 est.)

Population

$54,000

Median Income

San Marcos CISD: C+ (Niche), Hays CISD: B+ (Niche)[4]

School District Rating

Market Statistics

Property Values

$335,000 (Q2 2025)

Median Home Value

$1,650/mo (Q2 2025)

Median Rent

$210

Price per Sq Ft

Market Performance

Home Appreciation~4.5% YoY (2024-2025)

Market VelocityModerate; average DOM 38 days, inventory up slightly YoY

Foreclosure RateLow, <0.5%

Area Information

Area Size~120 sq mi

CountyHays (parts in Caldwell & Guadalupe)

Primary CitySan Marcos

Housing Profile

Housing Statistics

Total Housing Units~28,000

Owner Occupied~48%

Rental Properties~52%

Vacant Units~7%

New ConstructionActive, especially single-family and multifamily near Texas State University and I-35 corridor

Housing Types

Single-family homesStudent apartmentsTownhomesDuplexesMobile homes

Demographics

~85,000 (2025 est.)

Population

25.8 (skewed by university)

Median Age

$54,000

Median Income

~95% (unemployment ~5%)

Employment Rate

~32% bachelor’s or higher, high school grad rate ~89%

Education Levels

~32% families, high share of singles and students

Family Composition

Education Quality

School District Performance

San Marcos CISD: C+ (Niche), Hays CISD: B+ (Niche)[4]

District Rating

School DistrictSan Marcos CISD (majority), Hays CISD (north), plus charters

Test ScoresVaried; some elementary schools (Crockett, Hernandez, Blanco Vista) above state average, others below[2][3][5]

Graduation RatesSan Marcos HS: 83.8% (4-year)[3]

Schools in Area

Crockett Elementary
Hernandez Elementary
Blanco Vista Elementary
Goodnight Middle
Miller Middle
San Marcos High School
Ki Charter Academy

Economic Factors

Employment & Business

Job Growth~2.8% YoY (2024-2025)

Unemployment Rate~5%

Business EnvironmentGrowing, college-driven, logistics and retail expanding

Commercial ActivityStrong near I-35, outlet malls, downtown revitalization

Major Employers

Texas State University
San Marcos CISD
Amazon Fulfillment
H-E-B
City of San Marcos

Infrastructure & Quality of Life

Infrastructure

Transportation Access

• I-35 corridor
• San Marcos Transit (bus)
• Proximity to Austin (30 min) & San Antonio (45 min)

Utilities & Services

• City water/sewer
• Electric: Bluebonnet, PEC
• Gas: CenterPoint

Quality of Life

Safety & Environment

Moderate; property crime above TX average, violent crime near average

Good; river access, greenbelts, air quality above average

Healthcare Access

• Ascension Seton Hays
• San Marcos Medical Center
• Multiple clinics

Development Trends

Planned Developments

Mixed-use near downtown
Student housing expansions
Retail centers along I-35

Infrastructure Projects

• Road widening (I-35)
• Transit improvements

Investment Outlook

Growth Outlook

Strong, driven by university and Austin/San Antonio spillover

Investment Opportunities

• Student rentals
• Short-term rentals
• Value-add multifamily

Marketing Intelligence

Target Demographics

Investors (student housing)
First-time buyers
University staff/faculty
Young professionals

Competitive Advantages

University town stability
Growth corridor between Austin & San Antonio
Affordability vs. Austin

Pricing Strategies

Competitive pricing vs. Austin suburbs; value-add for investors

Common Objections & Response Strategies

Objection: Concerns about school quality

Response Strategy:

Highlight top-performing schools (Blanco Vista, Crockett), mention district improvement plans, and private/charter options[2][3][5].

Objection: High student/tenant turnover

Response Strategy:

Emphasize strong rental demand, property management solutions, and stable cash flow from university-driven market.

Objection: Traffic and congestion

Response Strategy:

Point out ongoing infrastructure improvements and proximity to major employers reducing commute times.

Professional Recommendations

Leverage university and I-35 proximity in marketing.

Educate buyers on school options and district improvement plans.

Target investors with rental performance data and property management contacts.

Highlight new construction and value-add opportunities.

Monitor zoning and development changes for early investment leads.

Competitive Analysis

Comparable Markets

Kyle (78640)
New Braunfels (78130)
Buda (78610)

Market Positioning

Affordable growth market with strong rental base

Competitive Advantages

Lower entry price vs. Austin suburbs
University-driven rental demand
Central location

Price Comparison

78666 median home price ~$335k vs. Kyle ~$370k, New Braunfels ~$390k, Austin ~$520k

Investment Metrics

5.5%–6.2% (student rentals higher end)

Cap Rates

~6% gross yield

Rental Yields

~17–18

Price-to-Rent

Strong for well-managed student and multifamily properties

Cash Flow

4–5% annual (2025–2027)

Appreciation

Buyer Journey Insights

First-Time Buyers

Attracted by affordability, new builds, and down payment assistance programs.

Move-Up Buyers

Seek larger homes in new subdivisions or established neighborhoods with amenities.

Downsizers

Prefer townhomes, condos, or 55+ communities near healthcare and recreation.

Investors

Focus on student rentals, multifamily, and short-term rentals for cash flow.

Relocators

Drawn by university, job growth, and lower cost of living vs. Austin/San Antonio.

This zip code analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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