Modernized 35-Room
New
For Sale
$1,370,000
9202 Homestead Rd, Houston, TX 77016
Two-story exterior-corridor lodging property with updated guest rooms, on-site parking, and flexible C2 commercial zoning.
Property Size19,059 SF
Lot Size0.88 Acres
Price / SF$71.88
Days on Market5
Property Features for 9202 Homestead Rd
General Information
Standard status
Active
Size
19,059 SF
Lot size
0.88 Acres
Property subtype
Residential Income
Zoning
C2
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$3,962
Amenities
high-speed internet
Building Details
Year Built
1979
Year Renovated
2023
Buildings
1
Stories
2
Listing Agency:
Brooks & Davis Real Estate
(832) 524-4526
Listed By:
Andre Beraud · License #0667248
(832) 524-4526
Source:
Exprealty
Added: Aug 26
Changed: Aug 29
Last Checked: Aug 29 at 8:52PM
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 Brooks & Davis Real Estate
Investment Insights
Based on property information with market context.
This two-story exterior-corridor motel contains 35 updated guest rooms within a 19,059-square-foot building. Originally built in 1979, the property received a complete capital improvement and modernization program in 2023. Guest amenities include high-speed internet, while on-site parking supports the existing lodging operation.
The property occupies a 0.88-acre lot totaling 38,332 square feet at 9202 Homestead Rd in Houston, Texas. Flexible C2 commercial zoning and frontage along a high-visibility thoroughfare support the current hospitality use and the stated potential for adaptive reuse, boutique lodging repositioning, or site redevelopment. The location also provides access to major arterial routes.
The property occupies a 0.88-acre lot totaling 38,332 square feet at 9202 Homestead Rd in Houston, Texas. Flexible C2 commercial zoning and frontage along a high-visibility thoroughfare support the current hospitality use and the stated potential for adaptive reuse, boutique lodging repositioning, or site redevelopment. The location also provides access to major arterial routes.
Key Highlights
- 35 updated guest rooms in a two‑story exterior‑corridor motel
- 19,059‑square‑foot building on a 0.88‑acre lot
- Complete capital improvement and modernization program completed in 2023
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
$101,684
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
7.42%
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%
$2,033,680
$2.0M
Cap Rate 7%
$1,452,629
$1.5M
Cap Rate 9%
$1,129,822
$1.1M
Market Conditions
NOI Build-Up for 19,059 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
$274.4K $14.40/SF
− Vacancy
−$60.4K −$3.17/SF
EGI
$214.1K $11.23/SF
− OpEx
−$112.4K −$5.90/SF
NOI
$101.7K $5.34/SF
Area
Houston, TX
Vacancy
22.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
52.50%
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%
$2,033,680
Cap Rate 7%
$1,452,629
Cap Rate 9%
$1,129,822
Alternative Uses
Best Use
Hotel Hospitality
$1.45M
$1.27M – $1.69M
NOI $101,684 @ 7.0% cap · market cap 7.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.90M
$4.29M – $5.72M
NOI $343,062 @ 7.0% cap · market cap 25.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
410
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 77016, TX
29,966
Population
11,131
Households
2.7
Avg Household Size
37
Median Age
11%
College-Educated
75%
High-School Grad
9.9 sq mi
ZIP Area
3,027
Density / Sq Mi
$46,411
Median Household Income
$30,510
Median Earnings
$1,163
Median Rent
$111,900
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Markel's Remodeling service/Resal furniture — 8620 Shotwell St, Houston, TX 77016
- La Mirage Motel — 9202 Homestead Rd, Houston, TX 77016
- Orbit Inn - Houston Homestead/Tidwell — 9202 Homestead Rd, Houston, TX 77016
- Knoxwood II Motel — 5002 Tidwell Rd, Houston, TX 77016
Frequently Asked Questions
What type of property is this?
Motel - Two-story exterior-corridor lodging property with updated guest rooms, on-site parking, and flexible C2 commercial zoning.
Where is this motel located?
The property is located at 9202 Homestead Rd Houston, TX.
What is the asking price?
The asking price for this property is $1,370,000.
What are key features of this property?
This property features: 35 updated guest rooms in a two‑story exterior‑corridor motel; 19,059‑square‑foot building on a 0.88‑acre lot; Complete capital improvement and modernization program completed in 2023
