Invest In Apartment Buildings In Del Rio, TX

What Drives Rental Demand In Del Rio

About 31.3% of households in Del Rio, TX rent their home. That's 3,889 renter households, according to the Census Bureau's ACS 2020–2024 estimates. Renter households dropped 15.3% 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.

The typical Del Rio household earns $66,158 a year, 47.2% more than in the 2015–2019 survey. The number of employed residents fell 2.4% over the same period, and unemployment stood at 4.9%. Incomes grew faster than rent (47.2% versus 31.2%), which leaves tenants a little more room in their budgets than five years ago.

Del Rio 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. Population fell 3.3% over five years, so we'd plan for slower leasing and conservative rent assumptions here.

Rents, Vacancy And Supply In Del Rio

Median gross rent in Del Rio, TX is $895 a month, up 31.2% from $682 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 1.1%, which is tight. Vacant units in Del Rio tend to lease quickly. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 49.1% 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 8.7% of homes in Del Rio are in buildings with 5 or more units, roughly 1,182 homes. That count was down 2.5% over five years, so new apartment supply has been limited. The median home was built in 1978, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

Del Rio By The Numbers

Out of 133 Texas cities in our data, Del Rio comes in 132nd for median gross rent, 88th for renter share and 66th for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. In raw numbers, Del Rio has about 1,178 fewer residents, 702 fewer renter households and 30 fewer 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.

Del Rio Compared With Texas

Del Rio's median gross rent of $895 is below the Texas median of $1,403, and its renter share is 31.3% compared with 37.4% statewide.

Del Rio Rent Affordability In Dollars

The median rent in Del Rio works out to $10,740 a year, about 16.2% of the median household income of $66,158. Under the common 30% guideline, a household needs about $35,800 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 $213 a month ($2,556 a year), while median household income rose $21,214 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago.

Del Rio Apartment Market Key Facts

These are the core numbers for Del Rio, TX, each from the Census Bureau's American Community Survey.

• Del Rio, TX has 34,668 residents, down 3.3% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Del Rio, TX is $66,158, up 47.2% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Del Rio, TX is $895 a month, up 31.2% over five years (U.S. Census ACS 2020–2024).
• 31.3% of households in Del Rio, TX rent, about 3,889 renter households (U.S. Census ACS 2020–2024).
• 8.7% of homes in Del Rio, TX are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Del Rio, TX is 1.1%, and 49.1% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Del Rio, TX was built in 1978 (U.S. Census ACS 2020–2024).

What We Look For In A Del Rio Apartment Building

Skyline buys 5+ unit apartment buildings in Del Rio that either run well today or can run better with new management or renovation. We start with rents, occupancy and the condition of the building, and we price on what the property earns now.

Texas has no state income tax on wages, and property taxes are often one of the largest expenses for apartment owners. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. 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 Del Rio

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

• What vacancy does the plan assume? Rental vacancy in Del Rio is 1.1%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 31.2% 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.
• What capital work is budgeted? The median home in Del Rio was built in 1978, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Del Rio fell 15.3%, 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 Del Rio Apartment Syndication Works

In an apartment syndication, Skyline acts as the general partner. We find the Del Rio property, negotiate the purchase, arrange the loan and oversee management and any renovation. Limited partners put in capital and own a share of the entity that owns the building. They don't sign on the loan or deal with tenants and repairs.

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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