| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 69th | Fair |
| Demographics | 45th | Poor |
| Amenities | 37th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1606 N Interstate 35, San Marcos, TX, 78666, US |
| Region / Metro | San Marcos |
| Year of Construction | 1986 |
| Units | 116 |
| Transaction Date | --- |
| Transaction Price | --- |
| Buyer | --- |
| Seller | --- |
1606 N Interstate 35 San Marcos Multifamily Investment
This 116-unit property built in 1986 offers value-add potential in a renter-dominant neighborhood where 88.4% of housing units are renter-occupied, according to CRE market data from WDSuite.
This inner suburb neighborhood in San Marcos demonstrates strong rental demand fundamentals, with renter-occupied housing representing 88.4% of all units—ranking in the top quartile nationally among neighborhoods. The area benefits from newer construction stock averaging 2007, significantly newer than the 1986 vintage of this property, creating potential repositioning opportunities to compete with surrounding developments.
Demographic statistics aggregated within a 3-mile radius show a young renter base, with 61.7% of the population aged 18-34, supporting sustained demand for rental housing. Population growth of 9.6% over the past five years has driven household expansion of 15.5%, with projections indicating continued growth through 2028. The forecast anticipates a 53.9% increase in households, expanding the potential tenant pool significantly.
The neighborhood's median home value of $222,900 paired with a median household income of $44,870 creates a value-to-income ratio ranking in the 98th percentile nationally, indicating elevated ownership costs that reinforce rental demand. Contract rents average $1,086, with 26.2% growth over five years, though rent-to-income ratios suggest affordability considerations for lease management. The area maintains competitive occupancy at 92.9% among existing multifamily properties.
The neighborhood's safety profile shows mixed trends that warrant consideration in investment planning. Property crime rates rank 344th among 527 Austin metro neighborhoods, placing it in the lower half for property-related incidents. However, recent data indicates a 4.3% decline in property offense rates year-over-year, suggesting improving conditions.
Violent crime metrics present greater concern, with rates ranking 407th of 527 metro neighborhoods and showing a 54.6% increase year-over-year. While these statistics require ongoing monitoring, the strong rental demand fundamentals and university proximity may help maintain occupancy despite safety considerations. Investors should factor security enhancements into capital planning and consider their impact on tenant retention strategies.
The San Marcos area benefits from proximity to major corporate employers throughout the Austin metro, supporting workforce housing demand and commute accessibility for tenants seeking affordable rental options within the broader employment corridor.
- State Farm Insurance — insurance (21.2 miles)
- Oracle Waterfront — technology (26.6 miles)
- Whole Foods Market — retail headquarters (27.6 miles) — HQ
- New York Life — financial services (32.4 miles)
- Coca-Cola — consumer goods (35.2 miles)
This 116-unit property presents a value-add opportunity in a fundamentally strong rental market, with the neighborhood ranking in the top quartile nationally for renter concentration at 88.4% of housing units. The 1986 construction year positions the asset for strategic renovation and modernization relative to the area's newer average building stock from 2007, potentially capturing rent premiums through targeted improvements.
Demographic projections within a 3-mile radius support long-term demand growth, with household counts expected to increase 53.9% through 2028 and median incomes forecast to rise 29.4%. The elevated home value-to-income ratio ranking in the 98th percentile nationally reinforces rental demand by making ownership less accessible, while the young renter demographic (61.7% aged 18-34) provides a stable tenant base for multifamily properties.
- Exceptional renter concentration at 88.4% ranks in top quartile nationally
- Value-add potential with 1986 vintage versus 2007 neighborhood average
- Strong demographic tailwinds with 53.9% projected household growth through 2028
- High ownership costs support sustained rental demand
- Risk considerations include rising violent crime trends and rent-to-income pressure