506 Worsham St · Montgomery, TX 77316

$225,000

3 bd · 1.0 ba · 1,192 sqft · SingleFamily public records · 41 Days on market

Built 1981 0.27 ac lot $189/sqft · 35% below area Est $345k · 35% under

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +15.0/15.0
• Cash flow +8.2/30.0
• Schools +5.4/10.0
• Livability +3.5/5.0
• Rent growth +2.6/5.0
• Condition / age +2.5/5.0
• 1% rule +2.3/10.0
• DSCR +2.2/10.0
• Appreciation +0.0/10.0

Listing remarks

This fully remodeled gem near Downtown Montgomery is now available! Step inside this cozy home that’s been completely reimagined from top to bottom! Every inch has been thoughtfully updated — from fresh paint and stylish flooring to modern kitchen and bathrooms that shine with today’s favorite finishes. The layout makes it feel spacious and inviting, perfect for gathering with friends or enjoying a quiet night in. Outside, you’ll love the easy-to-maintain yard and the unbeatable location — just minutes from Downtown Montgomery’s shops, restaurants, and weekend events. Whether you’re a first-time buyer, downsizing, or looking for a great investment c

Key facts

• Remodeled gem
• Modern kitchen
• Unbeatable location

Tags

• REMODELED GEM
• MODERN KITCHEN
• EASY TO MAINTAIN YARD
• UNBEATABLE LOCATION

Property features AI

Finance

• Other: Has additional parcels

Exterior

• Parking: Attached garage (1 car)
• Security: Smoke detector(s)
• Utilities: Public water; Public sewer
• Home design: Residential property; Built in 1981; Slab foundation; Composition roof; Road surfaced with asphalt; Subdivision lot
• Construction: Brick and wood siding construction
• Exterior features: Deck; Porch; Patio; Private yard; Storage; Shed(s)

Interior

• Kitchen: Dishwasher; Electric oven; Electric range; Garbage disposal; Microwave
• Bedrooms: Primary bedroom on the first floor (approx. 10 x 15); Bedroom on the first floor (approx. 9 x 12); Bedroom on the first floor (approx. 8 x 12); Sunroom on the first floor (approx. 11 x 23); Living room on the first floor (approx. 10 x 14)
• Flooring: Plank flooring; Vinyl flooring
• Bathrooms: 1 full bathroom; 1 half bathroom
• Heating & cooling: Central heating (electric); Central air conditioning (electric)
• Interior features: Granite counters; Kitchen/family room combo; Kitchen/dining combo; Tub with shower; Walk-in pantry; Ceiling fan(s)
• Laundry & utility: Washer hookup; Electric dryer hookup

What this means for you Summary

Snapshot

• This is a 3-bed/1.0-bath single-family listed at $225k.

Deal economics

• At list price, monthly cash flow is $-212 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $188k (16.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $165k (26.5% below list).
• Recommended offer: $165k (26.5% below list) — sets the bar for 1% rule.
• Cap rate 5.2% vs local median 2.0% in Montgomery — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 70/100 on livability (#372 in TX) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Montgomery ISD (rural): math 63% / reading 57% proficiency, ranked #49 of 826 in TX (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Montgomery El (math 50% / reading 50%, grade D+, #849 of 4,322 statewide, top 20%, 595 students, 45% FRL); Montgomery J H (math 68% / reading 54%, grade B+, #145 of 1,662 statewide, top 9%, 1,045 students, 30% FRL); Montgomery H S (math 53% / reading 62%, grade C, #327 of 1,632 statewide, top 20%, 1,556 students, 25% FRL).
• Market conditions: Rents flat; 2300 active listings in the ZIP; 12 comparable units currently listed for rent nearby; rentals leasing fast (median 7d on market — plan ~1-2 weeks tenant-placement turnaround); high-income renter base; 13,259 units permitted in Montgomery County in 2024 (1,402 in 5+ unit buildings).
• This rent is only 16% of the median local income ($124k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Montgomery County population projected at +65% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 41 days — a 3% lower offer ($218k) is reasonable based on typical stale-listing flexibility.
• 5 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Climate carrying-cost: severe wind risk, 99% chance of damaging wind over 30y; moderate wildfire risk; extreme-heat days projected 7→24/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $165,348 (26.5% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. It's been on market 41 days. Have you received any prior offers? Is the seller open to a 27% concession, seller financing, or rate buy-down credit?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
5. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
6. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
7. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
8. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.73% ✗
• Cap rate: 5.16%
• Cash-on-cash: -4.03%
• DSCR: 0.82
• GRM: 11.3

CMA / ARV

• ARV (median comp): $345,318
• List price: $225,000
• Delta: -34.84%
• Verdict: UNDERPRICED
• Comps: 6 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 0.4% rent growth · sell at horizon

5-year hold

• IRR: -25.9%
• Equity multiple: 0.14×
• Total profit: $-54,150
• Equity at exit: $33,548

10-year hold

• IRR: -33.5%
• Equity multiple: -0.28×
• Total profit: $-80,920
• Equity at exit: $19,454

Cash invested: $63,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 87 Strongly Landlord-Friendly
• State Texas: 87 Strongly Landlord-Friendly · R+5
• County: — inherits STATE
• City: — inherits STATE

3-day notice; statewide preemption; one of the fastest eviction climates; Travis County (Austin) slightly slower.

Methodology + full state rankings →

ZIP-level market 77316

• Home prices YoY: -10.7%
• Rents YoY: 0.4%
• Active inventory: 2300
• Price-to-rent: 11.3×

Monthly cashflow live

• Estimated rent: $1,653 high
• Mortgage (P&I): −$1,180
• Tax from tax record: −$244 /mo · $2,930/yr
• Insurance: −$94
• HOA: −$0
• Vacancy / Maint / Mgmt: −$347
• Net cashflow: $-212

Break-even live

Break-even rent $1,921

Max offer price $187,622

Occupancy floor —

Sensitivity live

Price	-10% $-84	-5% $-148	+0% $-212	+5% $-275	+10% $-339
Rent	-10% $-342	-5% $-277	+0% $-212	+5% $-146	+10% $-81
Rate	-1.0pp $-98	-0.5pp $-154	base $-212	+0.5pp $-270	+1.0pp $-329

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $56,250
• Closing costs: $6,750
• Reserves months: —
• Total cash needed: —

Rent comps 12 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
20879 Eva St Montgomery, TX	2.0	2.0	1098	$1,595	$1.45	45d	1	0.88mi
22870 Highway 105 W Montgomery, TX	1.0–3.0	1.0–2.0	1033	$1,760	$1.70	0d	18	1.24mi
22870 Texas 105 Unit 22927 Montgomery, TX	2.0	2.0	1045	$1,310	$1.25	45d	1	1.24mi
22870 Texas 105 Unit 2228 Montgomery, TX	2.0	2.0	992	$1,269	$1.28	0d	1	1.24mi
22870 Texas 105 Unit 3174 Montgomery, TX	3.0	2.0	1343	$1,759	$1.31	12d	1	1.24mi
22870 Texas 105 Unit 2162 Montgomery, TX	2.0	2.0	992	$1,285	$1.30	7d	1	1.24mi
22870 Texas 105 Unit 3228 Montgomery, TX	3.0	2.0	1343	$1,719	$1.28	0d	1	1.24mi
22870 Texas 105 Unit 22903 Montgomery, TX	3.0	2.0	1343	$1,785	$1.33	45d	1	1.24mi
22870 Texas 105 Unit 2174 Montgomery, TX	2.0	2.0	992	$1,310	$1.32	0d	1	1.24mi
254 Plez Morgan Unit A Montgomery, TX	2.0	2.0	975	$1,250	$1.28	20d	1	1.24mi
254 Plez Morgan Unit C Montgomery, TX	2.0	2.0	975	$1,350	$1.38	7d	1	1.24mi
270 Plez Morgan Dr Montgomery, TX	1.0–2.0	1.0–2.0	845	$1,250	$1.48	0d	4	1.27mi

Listing history 28 events

1. 2026-06-21
   days on market $225,000 Active 41 DOM
2. 2026-06-18
   days on market $225,000 Active 38 DOM
3. 2026-06-17
   days on market $225,000 Active 37 DOM
4. 2026-06-16
   days on market $225,000 Active 36 DOM
5. 2026-06-15
   days on market $225,000 Active 35 DOM
6. 2026-06-13
   days on market $225,000 Active 33 DOM
7. 2026-06-13
   days on market $225,000 Active 32 DOM
8. 2026-06-09
   days on market $225,000 Active 29 DOM
9. 2026-06-08
   days on market $225,000 Active 28 DOM
10. 2026-06-07
    days on market $225,000 Active 27 DOM
11. 2026-06-04
    days on market $225,000 Active 24 DOM
12. 2026-06-03
    days on market $225,000 Active 23 DOM
13. 2026-06-02
    days on market $225,000 Active 22 DOM
14. 2026-06-01
    days on market $225,000 Active 21 DOM
15. 2026-05-31
    days on market $225,000 Active 20 DOM
16. 2026-05-11
    listed $234,900 Active 866-char remark
17. 2026-05-04
    historical
18. 2026-03-25
    listed $244,900 Active
19. 2026-03-25
    historical
20. 2026-01-13
    status Active
21. 2026-01-06
    status Pending
22. 2025-12-08
    price $259,900
23. 2025-11-06
    listed $275,000 Active
24. 2025-04-04
    historical
25. 2025-03-26
    listed $195,000 Active
26. 2025-03-25
    soldstatus
27. 2025-03-17
    soldstatus
28. 1987-03-01
    soldstatus

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast TX · Resets to sale price

• Current annual tax: $2,930 · $244/mo
• Projected year-2 tax: $4,118 · $343/mo
• Expected delta: +$1,188/yr (+$99/mo · 40.5%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 8/10 Severe 7 d/yr ≥110°F today · 24 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 99% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $19,842
• − Mortgage interest: −$12,603
• − Property taxes: −$2,930
• − Insurance: −$1,125
• − Repairs & maintenance: −$1,587
• − Management: −$1,587
• − Depreciation: −$6,545
• Taxable loss: −$6,537
• Est. tax savings @ 24.0%: +$1,569
• After-tax cash flow: $-970/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Montgomery ISD
• NCES district ID: 4831260
• Math proficiency: 63% ▼ -3.00%
• Reading proficiency: 57% ▼ -3.00%
• Median HH income: $75,596
• Composite: 53.55/100
• National rank: #1445
• State rank: #49 of 826 in TX

Livability — Montgomery

• Score: 70/100
• State rank: #372
• US rank: #7894

Category grades

Amenities F Commute F Cost of living C Crime A+ Employment A+ Housing A+ Health & safety F User ratings A-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Montgomery, TX
• County: Montgomery County · 663,713 people
• City population: 67,277
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 34,694
• Household income: $124,055
• Rent vs Own: 10.9% rent · 89.1% own
• Severe rent burden: 273.0

Population outlook (Montgomery County) Hauer SSP2

• Today (2025): 713,896 people
• By 2030: 805,263 · +12.8%
• By 2040: 992,708 · +39.1%
• By 2050: 1,179,590 · +65.2%
• By 2075: 1,628,084 · +128.1%
• By 2100: 1,937,880 · +171.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (80%)
• Race & ethnicity: White 80% Hispanic / Latino 14% Two or more races 11% Black 1% Asian 1%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Lithuanian 6% Slovak 3% Romanian 3%
• Foreign-born: 6% · Canada
• Languages at home: 90% English-only · Spanish 8%

Political lean MEDSL · Montgomery

• 2024 margin: Solid R (+45.5) · D 26.8% · R 72.3%
• 2008→2024 swing: +7.2pp toward D · 2008: -52.7pp · 2024: -45.5pp
• All cycles: 2024: R+45.5 2020: R+43.8 2016: R+51.4 2012: R+60.7 2008: R+52.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -31.44%
• Current HPI: 262.6973
• Rent YoY: ▲ 0.40%
• Metro: Houston-The Woodlands-Sugar Land, TX
• State GDP YoY: ▲ 3.95%
• F500 in state: 110

Industry mix (Fortune 500 HQ in TX)

Industry	F500 HQs	Revenue
▸Energy	16	$1,198B
▸Technology	5	$198B
▸Engineering / Construction	4	$72B
▸Energy Services	3	$60B
▸Utilities	3	$41B
▸Healthcare	2	$330B

Price history

+15.4% since first listed

14 events — show timeline

• 2026-05-27 Price Changed $225,000 HARMLS
• 2026-05-11 Listed $234,900 HARMLS
• 2026-05-04 Listing Removed — HARMLS
• 2026-03-25 Listing Removed — HARMLS
• 2026-03-25 Listed $244,900 HARMLS
• 2026-01-13 Relisted — HARMLS
• 2026-01-06 Pending — HARMLS
• 2025-12-08 Price Changed $259,900 HARMLS
• 2025-11-06 Listed $275,000 HARMLS
• 2025-04-04 Listing Removed — HARMLS
• 2025-03-26 Listed $195,000 HARMLS
• 2025-03-25 Sold (Public Records) — Public Records
• 2025-03-17 Sold (Public Records) — Public Records
• 1987-03-01 Sold (Public Records) — Public Records

Property tax history

+7.3%/yr

Latest (2025): $2,930 · +8.5% YoY. Source: county tax records.