3228 Drew St · Houston, TX 77004

$299,900

3 bd · 3.5 ba · 2,066 sqft · Land · 68 Days on market

Built 2025 2,596 sqft lot $145/sqft · 23% below area Est $388k · 23% under ↓ 10% since listing

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Why this score? — see what drove the C+ 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).

• Cash flow +22.0/30.0
• ARV discount +15.0/15.0
• DSCR +7.0/10.0
• 1% rule +5.0/10.0
• Livability +3.7/5.0
• Schools +2.7/10.0
• Condition / age +2.5/5.0
• Rent growth +2.4/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Experience modern city living in this newly built 3-bedroom, 3.5-bath home in the rapidly developing Historic Third Ward. Featuring a highly desirable first-floor living area, this superior layout stands out. Enjoy high-standard finishes and the convenience of no shared bathrooms. Unbeatably located just minutes from Downtown, EaDo, and the University of Houston. Schedule your tour today!

Key facts

• Historic third ward
• No shared bathrooms
• 2,596 sq ft lot

Tags

• FIRST-FLOOR LIVING AREA
• HIGH-STANDARD FINISHES
• NO SHARED BATHROOMS
• MINUTES FROM DOWNTOWN
• HISTORIC THIRD WARD

What this means for you Summary

Snapshot

• This is a 3-bed/3.5-bath land listed at $300k.

Deal economics

• At list price, monthly cash flow is $476 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $299k (0.3% below list).
• Recommended offer: $282k (6.0% below list) — sets the bar for market timing.
• Cap rate 8.2% vs local median 3.2% in Houston — 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 74/100 on livability (#184 in TX, #4,771 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, cost of living A+, housing A+; Watch: crime F.
• Houston ISD (urban): math 27% / reading 35% proficiency, ranked #593 of 826 in TX (top 72%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 71% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Blackshear El (math 27% / reading 32%, grade F, #2,525 of 4,322 statewide, top 62%, 308 students, 99% FRL); Cullen Middle (math 6% / reading 14%, grade F, #1,641 of 1,662 statewide, top 99%, 324 students, 100% FRL); Yates H S (math 12% / reading 23%, grade F, #1,451 of 1,632 statewide, top 89%, 851 students, 96% FRL) — zoned schools average 98% FRL vs 71% district-wide (27 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 19% at this address vs 31% district-wide (-12 pts) — the specific schools serving this property underperform the Houston ISD average; the district grade overstates school quality for this exact location.
• Market conditions: Rents soft (-0.3%/yr); 585 active listings in the ZIP; 39 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 41% of comp listings sitting > 30 days — soft ceiling on asking rent; 29,883 units permitted in Harris County in 2024 (8,621 in 5+ unit buildings).
• At $2,989/mo this rent would consume 50% of the median local household income ($71k/yr) (locally 3072% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Harris County population projected at +47% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 68 days — a 6% lower offer ($282k) is reasonable based on typical stale-listing flexibility.

Recommended offer $281,906 (6.0% below list)

Questions for the listing agent

1. It's been on market 68 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
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: 1.00% ✗
• Cap rate: 8.20%
• Cash-on-cash: 6.80%
• DSCR: 1.30
• GRM: 8.4

CMA / ARV

• ARV (median comp): $387,837
• List price: $299,900
• Delta: -22.67%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -9.1%
• Equity multiple: 0.68×
• Total profit: $-27,139
• Equity at exit: $44,716

10-year hold

• IRR: -3.9%
• Equity multiple: 0.78×
• Total profit: $-18,767
• Equity at exit: $25,930

Cash invested: $83,972 (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 77004

• Rents YoY: -0.3%
• Active inventory: 585
• Price-to-rent: 8.4×

Monthly cashflow live

• Estimated rent: $2,989 high
• Mortgage (P&I): −$1,573
• Tax from tax record: −$188 /mo · $2,256/yr
• Insurance: −$125
• HOA: −$0
• Vacancy / Maint / Mgmt: −$628
• Net cashflow: $476

Break-even live

Break-even rent $2,387

Max offer price $299,900

Occupancy floor 79%

Sensitivity live

Price	-10% $645	-5% $560	+0% $476	+5% $391	+10% $306
Rent	-10% $239	-5% $357	+0% $476	+5% $594	+10% $712
Rate	-1.0pp $627	-0.5pp $552	base $476	+0.5pp $398	+1.0pp $319

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: $74,975
• Closing costs: $8,997
• Reserves months: —
• Total cash needed: —

Rent comps 39 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3335 Tuam St Houston, TX	2.0	1.0	2300	$995	$0.43	45d	1	0.11mi
3518 Dennis St Unit 1387517P Houston, TX	4.0	4.0	2271	$5,657	$2.49	0d	1	0.36mi
3034 Gray St Houston, TX	3.0	3.0	2081	$3,000	$1.44	45d	1	0.40mi
3517 McIlhenny St Houston, TX	3.0	3.5	2000	$3,200	$1.60	5d	1	0.42mi
3229 Holman St Houston, TX	4.0	4.0	1632	$1,200	$0.74	45d	1	0.44mi
3719 Elgin St Houston, TX	1.0–5.0	1.0–5.0	1241	$1,374	$1.11	26d	14	0.51mi
3507 Canfield St Houston, TX	3.0	2.5	2200	$2,350	$1.07	26d	1	0.54mi
3131 Leeland St Houston, TX	3.0	3.5	1966	$2,850	$1.45	26d	1	0.67mi
3015 Isabella St Houston, TX	3.0	1.0	1452	$1,399	$0.96	1d	1	0.72mi
2105 McGowen St Unit 1244936P Houston, TX	3.0	3.5	2497	$4,371	$1.75	0d	1	0.75mi
2109 McGowen St Unit 1244934P Houston, TX	3.0	3.5	2497	$4,245	$1.70	0d	1	0.76mi
2107 McGowen St Unit 1244935P Houston, TX	3.0	3.5	2497	$4,711	$1.89	4d	1	0.76mi
2103 McGowen St Unit 1244937P Houston, TX	3.0	3.5	2292	$4,732	$2.06	0d	1	0.76mi
2519 Saint Emanuel St Unit 1241246P Houston, TX	3.0	3.0	2389	$2,621	$1.10	0d	1	0.77mi
2521 Saint Emanuel St Unit 1047945P Houston, TX	3.0	3.0	2292	$2,727	$1.19	0d	1	0.77mi
2326 St Emanuel St Houston, TX	3.0	3.5	2642	$2,601	$0.98	9d	1	0.81mi
3213 Saint Emanuel St Houston, TX	4.0	3.5	2100	$3,300	$1.57	18d	1	0.84mi
3405 St Emanuel St Houston, TX	4.0	5.0	2388	$2,900	$1.21	45d	1	0.88mi
2209 Alabama St Unit B Houston, TX	3.0	2.5	2074	$2,350	$1.13	45d	1	0.91mi
4306 Ennis St Houston, TX	3.0	3.0	1989	$2,500	$1.26	45d	1	0.92mi
3226 McKinney St Houston, TX	3.0	3.0	2274	$2,500	$1.10	45d	1	0.96mi
2401 Eagle St Houston, TX	4.0	4.0	1700	$2,800	$1.65	45d	1	1.00mi
2216 Chenevert St Houston, TX	1.0–2.0	1.5–2.5	1380	$2,800	$2.03	26d	3	1.01mi
2357 Jackson St Houston, TX	3.0	2.5	1908	$2,500	$1.31	23d	1	1.03mi
2311 Eagle St Houston, TX	3.0	4.0	1783	$2,500	$1.40	45d	1	1.03mi
4001 Dallas St Unit 1029264P Houston, TX	3.0	3.0	2174	$5,220	$2.40	0d	1	1.05mi
2809 Crawford St Houston, TX	2.0	2.0	1928	$2,600	$1.35	45d	1	1.09mi
3535 Wentworth St Houston, TX	4.0	3.0	2600	$2,650	$1.02	23d	1	1.11mi
2816 Rusk St Houston, TX	3.0	3.5	2107	$2,800	$1.33	45d	1	1.14mi
2703 Blodgett St Unit 1047952P Houston, TX	1.0–5.0	1.5–5.5	2497	$12,804	$5.13	0d	2	1.14mi
1915 Cleburne St Houston, TX	2.0	1.0	2766	$1,800	$0.65	45d	1	1.16mi
2416 La Branch St Houston, TX	3.0	4.0	2540	$2,900	$1.14	45d	1	1.18mi
2504 Rusk St Unit 1563174P Houston, TX	2.0	2.0	1819	$4,036	$2.22	4d	1	1.21mi
2721 Austin St Houston, TX	3.0	4.0	2607	$3,000	$1.15	26d	1	1.21mi
1310 Anita St Houston, TX	2.0	2.0	1760	$2,695	$1.53	45d	1	1.28mi
2403 Arbor St Houston, TX	3.0	2.5	2344	$2,800	$1.19	45d	1	1.32mi
1515 Austin St Houston, TX	1.0–2.0	1.0–2.5	1120	$3,679	$3.28	0d	16	1.36mi
2856 Fannin St Houston, TX	2.0	2.0	1490	$3,400	$2.28	45d	1	1.43mi
2850 Fannin St Houston, TX	1.0–2.0	1.0–2.0	1138	$3,350	$2.94	1d	23	1.46mi

Listing history 14 events

1. 2026-06-21
   days on market $299,900 Active 68 DOM
2. 2026-06-18
   days on market $299,900 Active 65 DOM
3. 2026-06-17
   days on market $299,900 Active 64 DOM
4. 2026-06-16
   days on market $299,900 Active 63 DOM
5. 2026-06-15
   days on market $299,900 Active 62 DOM
6. 2026-06-13
   days on market $299,900 Active 60 DOM
7. 2026-06-10
   days on market $299,900 Active 56 DOM
8. 2026-06-08
   days on market $299,900 Active 55 DOM
9. 2026-06-07
   days on market $299,900 Active 54 DOM
10. 2026-06-04
    days on market $299,900 Active 51 DOM
11. 2026-06-01
    days on market $299,900 Active 48 DOM
12. 2026-05-31
    days on market $299,900 Active 47 DOM
13. 2026-05-07
    price $299,900 391-char remark

    Show marketing remark (391 chars)

    Experience modern city living in this newly built 3-bedroom, 3.5-bath home in the rapidly developing Historic Third Ward. Featuring a highly desirable first-floor living area, this superior layout stands out. Enjoy high-standard finishes and the convenience of no shared bathrooms. Unbeatably located just minutes from Downtown, EaDo, and the University of Houston. Schedule your tour today!

14. 2026-04-14
    listed $334,900 Active 391-char remark

    Show marketing remark (391 chars)

    Experience modern city living in this newly built 3-bedroom, 3.5-bath home in the rapidly developing Historic Third Ward. Featuring a highly desirable first-floor living area, this superior layout stands out. Enjoy high-standard finishes and the convenience of no shared bathrooms. Unbeatably located just minutes from Downtown, EaDo, and the University of Houston. Schedule your tour today!

ⓘ 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: $2,256 · $188/mo
• Projected year-2 tax: $5,488 · $457/mo
• Expected delta: +$3,232/yr (+$269/mo · 143.3%)

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

Taxation est. · year 1

• Rental income: $35,866
• − Mortgage interest: −$16,799
• − Property taxes: −$2,256
• − Insurance: −$1,500
• − Repairs & maintenance: −$2,869
• − Management: −$2,869
• − Depreciation: −$8,724
• Taxable income: $849
• Est. tax owed @ 24.0%: −$204
• After-tax cash flow: $5,503/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: Houston ISD
• NCES district ID: 4823640
• Math proficiency: 27% ▼ -18.00%
• Reading proficiency: 35% ▼ -6.00%
• Median HH income: $46,054
• Composite: 26.63/100
• National rank: #7173
• State rank: #593 of 826 in TX

Livability — Houston

• Score: 74/100
• State rank: #184
• US rank: #4771

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Houston, TX
• County: Harris County · 4,702,590 people
• City population: 3,226,434
• Metro: Houston-The Woodlands-Sugar Land, TX
• Population (ZIP): 35,997
• Household income: $71,199
• Rent vs Own: 61.8% rent · 38.2% own
• Severe rent burden: 3072.0

Population outlook (Harris County) Hauer SSP2

• Today (2025): 5,571,493 people
• By 2030: 6,089,821 · +9.3%
• By 2040: 7,142,806 · +28.2%
• By 2050: 8,185,864 · +46.9%
• By 2075: 10,574,329 · +89.8%
• By 2100: 12,109,958 · +117.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Diverse neighborhood (Simpson 0.68)
• Race & ethnicity: Black 48% White 27% Hispanic / Latino 13% Two or more races 11% Asian 8%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Lithuanian 1% Romanian 1% Italian 1%
• Foreign-born: 14% · Canada, China, South Korea
• Languages at home: 82% English-only · Spanish 10% Chinese 2% Other Indo-European 2%

Political lean MEDSL · Harris

• 2024 margin: Lean D (+5.5) · D 52.0% · R 46.4% · Other 1.6%
• 2008→2024 swing: +3.9pp toward D · 2008: 1.6pp · 2024: 5.5pp
• All cycles: 2024: D+5.5 2020: D+13.3 2016: D+12.4 2012: D+0.1 2008: D+1.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -139.34%
• Current HPI: 199.6066
• Rent YoY: ▼ -0.32%
• 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

-10.5% since first listed

2 events — show timeline

• 2026-05-07 Price Changed $299,900 HARMLS
• 2026-04-14 Listed $334,900 HARMLS