Home to both the state capital and the flagship school of the University of Texas system, Austin is a busy town. Located on the banks of the Colorado River, Austin is often considered the cultural seat of Texas. The city hosts the famous "South by Southwest" film festival, and is the self-proclaimed "live music capital of the world."

Home Shopping in Austin

As with most university towns, Austin is pretty well off financially. Property taxes are high, and homes sell for prices close to the national average. There is modest appreciation on Austin homes, and the population is growing. Overall, the Austin region is an economically stable area, and a home in Austin would be a relatively low-risk investment.

As a financially stable area, Austin receives little attention from HUD. Minorities may find some assistance in getting a home in this predominantly white town, but the Texas branch of HUD directs most of its attention at the San Antonio region. Still, discount realty and foreclose investments are to be found, if you look in the right places.

All homes currently listed for sale by HUD are damaged properties. These are homes that were in the floodplain of the Colorado River in a recent flood, and are noted as such by FEMA (the Federal Emergency Management Agency). Prices on these homes range from $38,000 to $150,000--and may well be worth the repair costs, considering the low asking prices.