School District Ratings

[Lia Locarnini]

Hi Bigger Pockets Community!  From a buy and hold investor’s perspective, I know you should generally look for good schools in the area because it lends to higher rents and fewer days on rental market. But, since home prices tend to increase in areas with better schools, I wonder if there is a breaking point of home price value and high rent/rent ability.  When you look at Great School ratings do you always aim for 9/10?  Or do you find better returns when schools are 6/7/8 in up and coming neighborhoods?   I am looking in the north Texas (Fort Worth and suburbs) as well as Austin and suburbs.

[Aaron Gordy]

@Lia Locarnini Austin metro is a bit different. The city of Austin has a younger demographic and doesn't necessarily follow those trends in regards to appreciation. There are areas of Austin where the schools aren't that great and the appreciation rates for nearby housing is tremendous. For example, Johnston High School, now called Eastside Memorial isn't the best but the appreciation rates in that zip code year over year for existing median house prices according to the latest stats from the Austin board of realtors is 18.9%. In those areas there are alternatives to public schooling. I used to teach and volunteer at Johnston HS and it was a circus at times. That zip code has had steady appreciation for decades.

 In the suburbs, ratings matter.