Strong landlord territory with redevelopment momentum, military proximity, and excellent cash flow potential.
$165K
Median Sale
$1,350
Avg Rent
7.5%
Cap Rate
65%
MAO Rule
$1.5B development bringing retail, jobs, and new residents to South Side
Close to Lackland AFB—steady stream of military families needing rentals
$200-400/month positive cash flow per door is achievable
Gentrification spreading south—early investors see both cash flow AND appreciation
Former Air Force base being converted to mixed-use. New construction apartments driving demand for surrounding SFH rentals.
✓ Best appreciation potential in 78242
Established working-class neighborhoods with 1950s-1970s brick homes. Reliable tenant pool.
✓ Consistent rental demand
Most affordable pocket. Higher vacancy risk but best cash-on-cash returns if managed well.
⚠️ Screen tenants carefully
INCOME
EXPENSES
Monthly Cash Flow
$597
On $165K purchase
Annual Cash-on-Cash (20% down)
21.7%
MAO Formula for 78242:
65% × ARV - Repairs - $8K Fee
78242 is pure landlord territory—use the 65% rule and lead with cash flow numbers when marketing to buyers. The Brooks City Base redevelopment is creating appreciation potential that's rare in Tier 3 markets. Target 3BR brick homes with central A/C and fenced yards—these rent fastest.