Thinking about trading city corners for Hill Country space near Oak Hill Road? You’re not alone. Buyers are eyeing acreage here for privacy, views, and room for hobbies, while sellers see steady interest even as the broader market rates and activity shift. In this guide, you’ll learn what drives demand and price per acre, the due diligence that matters in Kerr County, and how to budget for utilities, permits, and development. Let’s dive in.
Market snapshot near Oak Hill Road
The Texas Hill Country has seen persistent interest in rural land. According to the Texas Real Estate Research Center, the Austin–Waco–Hill Country region posted a Q1 2025 median of about $7,291 per acre, though local parcels near Kerrville can sell well above regional medians based on size, utilities, topography, and water access (Texas Real Estate Research Center). In the Kerrville area, smaller, well-located tracts with utilities often command tens of thousands per acre.
Local demand is supported by a recognized housing shortage and ongoing growth efforts in and around the city, which keeps quality acreage in focus for buyers seeking lifestyle and space (San Antonio Express-News).
What makes this area appealing
- Hill Country setting with privacy and room for horses, gardens, and hobbies.
- Proximity to Kerrville amenities while feeling truly rural.
- Smaller tracts with utilities and good access are typically more liquid on resale.
Price factors to watch
- Size and shape: Efficient, buildable acreage typically commands a premium.
- Utilities and access: Existing electric, well or water options, and a solid driveway add value.
- Water influence: Creek or river adjacency can add lifestyle value but also flood risk and insurance costs.
- Restrictions and rights: Deed restrictions, mineral reservations, and easements can affect use and value.
Due diligence before you make an offer
Confirm location and who regulates your tract
Kerr County generally does not have countywide zoning, but the City of Kerrville does. If the parcel is inside city limits or the extraterritorial jurisdiction, city standards may apply. Confirm whether your tract is inside the city, the ETJ, or unincorporated county before you plan uses or improvements (Kerr County Road & Bridge).
Flood risk after the July 2025 storms
The July 2025 flooding placed flood risk under a spotlight. Some affected properties were outside mapped 100-year floodplains, so do not rely on outdated maps alone. Order a flood-hazard review, ask for elevation certificates on existing structures, and budget for changing flood insurance pricing and requirements (San Antonio Express-News, Houston Chronicle). For disaster assistance context and updates, review FEMA’s local guidance on the Kerr County declaration (FEMA).
Septic systems and wells
- Septic: Kerr County’s Environmental Health Department oversees on-site sewage (OSSF) permitting. Request permit records and inspection or pump cards, and plan a perk test if you intend to build (Kerr County Environmental Health OSSF).
- Wells: Headwaters Groundwater Conservation District regulates wells, spacing, and permits. Ask for the driller’s log, recent water-quality tests, and check typical well depths and yields nearby (Headwaters GCD).
Driveway access and maintenance
If your access ties into a county-maintained road, a driveway permit is required. Clarify who maintains the road, whether it is private, and if any road association or lateral-road taxes apply. Budget for culverts, gates, and all-weather access improvements as needed (Kerr County Road & Bridge).
Easements, minerals, and restrictions
Request a title commitment and review recorded easements, pipeline or utility corridors, and any deed restrictions or HOA rules. In Texas, minerals can be severed from the surface estate. Confirm what conveys so you understand long-term use and value impacts.
Utilities and broadband
Confirm who serves electricity and how far the nearest pole and transformer are. The Kerrville Public Utility Board serves the city and surrounding areas, while some rural tracts may fall under co-ops or require line extensions. Ask for estimated extension costs in writing (KPUB).
Taxes and agricultural valuation
Property tax rates vary by taxing unit. If the tract has an agricultural or wildlife valuation, it can substantially reduce the tax burden when handled correctly. Review Kerr Central Appraisal District guidance, qualification standards, and deadlines before closing (Kerr CAD Tax Information).
Budgeting for development
Turning raw acreage into a build-ready homesite can involve: driveway and culverts, clearing and grading, septic design and installation, well drilling and testing, electric line extensions, erosion control, fencing and gates, and possible drainage or retaining work. Costs can span tens of thousands to low hundreds of thousands based on slope, soils, and utility distance.
Financing raw land typically involves higher down payments and rates than a home purchase. If you plan to build, ask lenders about land-plus-construction options, surveys, and any engineering or utility documentation they will require. Expect appraisal contingencies and ensure your offer includes time for surveys and feasibility.
Seller tips for a smoother sale
- Pull records early: septic permits, well logs, recent surveys, and any floodplain or FEMA communications.
- Clarify utilities: who serves electricity, whether there is a transformer, and distance estimates for extensions.
- Organize tax and valuation documents: if ag or wildlife valuation applies, share management records and Kerr CAD correspondence.
- Provide copies of recorded restrictions, road maintenance agreements, and any easements.
Quick buyer checklist
- Verify city vs. county status and any applicable zoning or standards.
- Order a flood-hazard review and request elevation certificates.
- Pull OSSF records, plan a perk test, and inspect any existing system.
- Obtain well permit history, driller’s log, and water-quality tests.
- Confirm electric provider, pole and transformer proximity, and extension costs.
- Review easements, mineral reservations, restrictions, and road maintenance.
- Check current tax status and ag or wildlife valuation requirements.
Ready to compare specific Oak Hill Road parcels or plan your due diligence timeline? Reach out to schedule a consult with REALTOR® DJ for a clear, step-by-step path from offer to closing.
FAQs
How is demand for acreage near Oak Hill Road right now?
- Regional Hill Country demand remains steady, with a Q1 2025 regional median of about $7,291 per acre for rural land, while well-located smaller tracts near Kerrville often command higher per-acre prices due to utilities, access, and setting (Texas Real Estate Research Center).
What should I know about flood risk for Kerrville-area acreage after July 2025?
- Order a site-specific flood review, request elevation certificates for any structures, and budget for changing insurance requirements because 2025 flooding affected properties beyond some mapped areas (San Antonio Express-News, Houston Chronicle).
Who provides electricity and water near Oak Hill Road in Kerr County?
- KPUB serves Kerrville and nearby areas, some tracts are served by co-ops, and rural parcels often rely on private wells regulated by Headwaters GCD, so confirm provider, distance to infrastructure, and permit history before you buy (KPUB, Headwaters GCD).
How do agricultural or wildlife valuations work in Kerr County?
- Qualifying tracts that meet use-intensity standards can receive reduced tax appraisals under 1-D-1 open-space or wildlife management plans, and you should review Kerr CAD guidelines and deadlines early in your purchase process (Kerr CAD Tax Information).
What development costs should I plan for when building on raw land?
- Budget for driveway and culverts, clearing and grading, septic and well work, electric extensions, fencing, and possible drainage or retaining features, which can range from tens of thousands to low hundreds of thousands depending on site conditions.
