Luxury Duplex Near Hobby
For Sale
$640,000
Pending
8903 Encino Valley Dr AB, Houston, TX 77075
Upscale three-story duplex with great views, under construction near airport.
Property Size2,658 SF
Days on Market255
Property Features for 8903 Encino Valley Dr AB
General Information
Standard status
Pending
Size
2,658 SF
Property subtype
Investment
Building Details
Building Size
2,658 SF
Stories
3
Listing Agency:
(713) 629-1900
Listed By:
Nonmls
(713) 629-1900
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 9
Last Checked: Aug 9 at 10:57AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Nonmls
Investment Insights
Based on property information with market context.
This gated entry duplex, currently under construction, is located close to Hobby Airport and near Pearland Parkway. The three-story homes offer great views and upscale living. Showings will begin once construction is completed.
Key Highlights
- Gated entry for enhanced security and privacy.
- Luxury duplex with upscale living.
- Three‑story home offering great views.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$34,814
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.44%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$696,280
$696.3K
Cap Rate 7%
$497,343
$497.3K
Cap Rate 9%
$386,822
$386.8K
Market Conditions
NOI Build-Up for 2,658 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$52.6K $19.80/SF
− Vacancy
−$2.9K −$1.09/SF
EGI
$49.7K $18.71/SF
− OpEx
−$14.9K −$5.61/SF
NOI
$34.8K $13.10/SF
Area
Houston, TX
Vacancy
5.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$696,280
Cap Rate 7%
$497,343
Cap Rate 9%
$386,822
Alternative Uses
Best Use
Multifamily LT 5
$497.3K
$435.2K – $580.2K
NOI $34,814 @ 7.0% cap · market cap 5.44%
Second Best
Apartment 5plus
$430.2K
$376.4K – $501.9K
NOI $30,113 @ 7.0% cap · market cap 4.71%
Theoretical Best
Office A
$683.5K
$598.1K – $797.4K
NOI $47,844 @ 7.0% cap · market cap 7.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
259
Businesses Nearby
Explore this area
Business Placement
Demographics for 77075, TX
38,873
Population
13,267
Households
2.9
Avg Household Size
32
Median Age
16%
College-Educated
70%
High-School Grad
11.2 sq mi
ZIP Area
3,471
Density / Sq Mi
$71,509
Median Household Income
$34,327
Median Earnings
$1,225
Median Rent
$219,900
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Upscale three-story duplex with great views, under construction near airport.
Where is this duplex located?
The property is located at 8903 Encino Valley Dr AB Houston, TX.
What is the asking price?
The asking price for this property is $640,000.
What are key features of this property?
This property features: Gated entry for enhanced security and privacy.; Luxury duplex with upscale living.; Three‑story home offering great views.
