ZIP CODE 78504 // MCALLEN-EDINBURG-MISSION, TX // DATA AS OF 2026-09-30
McAllen, TX (78504) Rental Property Cap Rate & Cash Flow Report
Located in Hidalgo County (McAllen, TX), Zip Code 78504 ranks #79 of 500 within this selected sample (84th percentile) with a Zillow ZHVI typical home-value index of $263,666 (+0.1% YoY) and a ZORI observed market rent of $1,684/mo (+3.2% YoY). Requires at least 38.1% down payment at 6.5% interest to reach $0/mo break-even cash flow. This model combines different housing populations; it is not an observed average property return. Costs assume state-average tax, 0.5% annual insurance, 13% reserves and no HOA or management. Figures below follow your edits; this headline describes the original benchmark.
Net Monthly Cash Flow
-$301/mo
Annual: -$3,612/yr
Modeled Cap Rate
4.70%
NOI: $12,387/yr
Cash-on-Cash Return
-5.96%
Cash Needed: $60,643
1% Rule Ratio
0.64%
Gross Yield: 7.66%
Break-Even Rent
$2,030/mo
State Tax: 1.47%/yr
INTERACTIVE PRO-FORMA STATEMENT (ZIP 78504 BENCHMARK)
Edit any value
Purchase Price (ZHVI proxy)
Monthly Gross Rent (ZORI proxy)
Down Payment (%)
Interest Rate (30Y Fixed %)
Annual Property Tax (TX Avg 1.47%)
Annual Home Insurance ($)
Monthly HOA Fee ($)
Monthly Debt Service (P&I)
-$1,333/mo
Monthly Operating Expenses (Tax + Ins + 13% Reserves)
-$652/mo
HISTORICAL ZHVI PRICE VS. ZORI RENT TRAJECTORY (78504)
| Year | ZHVI Value | ZORI Rent | Gross Yield |
|---|---|---|---|
| 2022 | $248,070 | $1,501/mo | 7.26% |
| 2023 | $255,979 | $1,569/mo | 7.36% |
| 2024 | $263,037 | $1,616/mo | 7.37% |
| 2025 | $263,420 | $1,631/mo | 7.43% |
| 2026 | $263,666 | $1,684/mo | 7.66% |
COMPARABLE U.S. RENTAL MARKETS
| Zip / City | Price | Rent | Cap Rate | Cash Flow |
|---|---|---|---|---|
| 76179 Fort Worth, TX | $315,813 | $2,018/mo | 4.70% | -$360/mo |
| 79936 El Paso, TX | $224,897 | $1,440/mo | 4.71% | -$254/mo |
| 77840 College Station, TX | $286,872 | $1,848/mo | 4.76% | -$314/mo |
| 77044 Houston, TX | $284,438 | $1,859/mo | 4.85% | -$288/mo |
| 77493 Katy, TX | $335,766 | $2,197/mo | 4.86% | -$338/mo |
| 75211 Cockrell Hill, TX | $222,799 | $1,469/mo | 4.91% | -$214/mo |