Location: Navarro County, TX | Metro: Navarro County, TX
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,860 | $432,037 | 0.43% | F |
| 4BR | $1,860 | $763,435 | 0.24% | F |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 75109 presents several challenges for first-time Section 8 landlords. Tenant turnover is a significant concern, as the market rent stands at $1,185 compared to the Federal Market Rent (FMR) of $1,400 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants might be drawn to higher-paying jobs outside the subsidized housing range, leading to frequent moves and increased vacancy rates.
Vacancy exposure is another critical issue. The Days on Market (DOM) figure is currently unavailable, which implies that there might be inefficiencies in the local rental market's ability to fill vacancies quickly. Given the high market rent relative to the median income of $88,074, it is likely that landlords will face prolonged periods of vacancy if they rely solely on Section 8 tenants.
The deferred-maintenance exposure is substantial due to the typical home value of $401,238. Landlords must be prepared to invest in property upkeep and repairs, which can be costly and may not be fully covered by the rent received from Section 8 tenants. Maintenance costs can quickly erode profit margins, especially when coupled with the potential for extended vacancy periods.
Despite these risks, the high concentration of renters in ZIP 75109—comprising 10.4% of the population—indicates a robust demand for rental properties. This high renter density often translates into a strong demand for Section 8 vouchers, which can help mitigate the risks associated with vacancy and turnover. The presence of a large number of renters suggests a diverse tenant pool, increasing the likelihood of finding reliable Section 8 participants.
In conclusion, the investment in Section 8 properties in ZIP 75109 carries moderate risk. While the risks of tenant turnover, vacancy exposure, and deferred maintenance are present, the high renter density provides a counterbalance, making it a viable option for landlords willing to manage these challenges effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.