Location: Van Zandt County, TX | Metro: Henderson 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 | $800 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $340,996 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 75124 are significant and should be carefully considered. Tenant turnover is a major concern, with the market rent at $1,019 compared to the Federal Market Rent (FMR) of $970 for fiscal year 2026 in the metropolitan area. This disparity can lead to higher turnover rates as tenants seek out more affordable housing options.
Vacancy exposure is another critical issue. The days on market (DOM) figure is currently unavailable, which makes it difficult to predict how long it might take to find a tenant. In a competitive rental market, this uncertainty can result in extended periods of vacancy, reducing cash flow and increasing the financial burden on the landlord.
Deferred maintenance is also a risk factor. With a typical home value of $299,132 and a median income of $79,083, landlords must ensure that properties meet Section 8 standards without overextending their budgets for repairs and upkeep. This can be particularly challenging when the property requires significant renovations or improvements.
However, these risks must be weighed against the high renter density in the area, with 14.2% of residents being renters. High renter density often correlates with a higher demand for rental assistance vouchers, such as those offered through Section 8. This demand can stabilize occupancy rates and provide a steady stream of qualified tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 75124 is moderate.
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.