Invest In Apartment Buildings In Schertz, TX

Who Rents In Schertz

About 21.6% of households in Schertz, TX rent their home. That's 3,440 renter households, according to the Census Bureau's ACS 2020–2024 estimates. Renter households dropped 4.6% between the 2015–2019 and 2020–2024 surveys. We treat that as a caution flag and look closely at occupancy in any building we consider here.

Median household income in Schertz, TX is $99,948, up 14.8% over five years. Resident employment rose 3.3% and the unemployment rate was 6.2% in the latest survey. Rent has risen faster than income (25.5% versus 14.8%), so more tenants are stretched. Well-run older buildings that rent below new construction tend to hold up best in that setting.

Schertz leans toward ownership. Apartment buildings compete with single-family rentals for tenants, so we look closely at how a property's rents compare with nearby rental houses.

Rents, Vacancy And Supply In Schertz

Median gross rent in Schertz, TX is $1,659 a month, up 25.5% from $1,322 in the 2015–2019 survey (U.S. Census ACS 2020–2024). Few markets grew rent faster over the period. We still underwrite slower growth from here, because rent spikes tend to cool once new supply catches up.

Rental vacancy is 8.6%, higher than we like to see. Before buying here, we'd want to know whether the empty units sit in a few older properties or across the whole market. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 45.7% of renters spend 30% or more of their income on housing. That is close to the national picture, where roughly half of renters do, so rent increases need to track local wage growth.

About 8% of homes in Schertz are in buildings with 5 or more units, roughly 1,331 homes. It grew 7.3% over five years, a moderate amount of new supply. The median home was built in 2002, so the housing stock is relatively new. Value-add plans here lean more on management and amenities than on heavy renovation.

How Schertz Ranks For Apartment Investors

Among the 133 Texas cities we track, Schertz ranks 56th for median gross rent, 112th for renter share and 96th for five-year rent growth. Its rents fall in the middle of the pack. In raw numbers, Schertz has about 2,851 more residents, 166 fewer renter households and 91 more homes in buildings with 5 or more units than in the 2015–2019 survey. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

How Schertz Compares With The Texas Average

Schertz's median gross rent of $1,659 is above the Texas median of $1,403, and its renter share is 21.6% compared with 37.4% statewide.

Can Tenants Afford Schertz Rents?

The median rent in Schertz works out to $19,908 a year, about 19.9% of the median household income of $99,948. Under the common 30% guideline, a household needs about $66,400 a year to cover that rent comfortably. That's a lighter load than the Texas average of 21.5%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $337 a month ($4,044 a year), while median household income rose $12,885 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal.

Schertz Apartment Market Key Facts

Here's the Schertz rental market in short form, with the source on every figure.

• Schertz, TX has 44,050 residents, up 6.9% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Schertz, TX is $99,948, up 14.8% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Schertz, TX is $1,659 a month, up 25.5% over five years (U.S. Census ACS 2020–2024).
• 21.6% of households in Schertz, TX rent, about 3,440 renter households (U.S. Census ACS 2020–2024).
• 8% of homes in Schertz, TX are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Schertz, TX is 8.6%, and 45.7% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Schertz, TX was built in 2002 (U.S. Census ACS 2020–2024).

What We Look For In A Schertz Apartment Building

In Schertz we focus on apartment buildings with 5 or more units. Some are stabilized and well run. Others have below-market rents or deferred maintenance that a better operator can fix. Either way, the deal has to make sense on current numbers.

Texas has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Texas has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Texas reflect hurricane and flood exposure and hail and wind damage, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Due Diligence For Apartment Syndications In Schertz

The data on this page turns into a short checklist for evaluating an apartment syndication in Schertz.

• What vacancy does the plan assume? Rental vacancy in Schertz is 8.6%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 25.5% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Schertz was built in 2002, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How will the building hold occupancy? Renter households in Schertz fell 4.6%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Schertz Apartment Syndication Works

A syndication splits the work from the capital. As general partner, Skyline sources and buys the building, sets the business plan and runs it with a property manager. Limited partners invest money, own part of the property and receive reports, but they don't manage anything day to day.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

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