> But even within a single school district there are "good schools" and "bad schools" and not terribly surprisingly, rents and home prices are more expensive in the neighborhoods with the higher rated schools.

Yes, that’s true, but it's not a product of funding by neighborhood, because that's not how the schools in that case are funded.

It's been fairly strongly argued that that's actually because the schools themselves make almost no difference at all on average, and school outcomes are pretty much determined by socioeconomic background and other personal traits of the student with ransome variation, and the “good schools” are just the ones attended by the students with the traits that would produce, on average, good outcomes independent of what school they attend.