Location: Van Zandt County, TX | Metro: Tyler, TX MSA
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 | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $161,411 | 0.75% | D |
| 3BR | $1,620 | $248,949 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 75140, Grand Saline, TX, reveals some interesting dynamics. To start, let's consider the Federal Market Rent (FMR) for a 2-bedroom apartment, which is set at $1020 annually for fiscal year 2024. This figure translates into a monthly rental income of approximately $85 per unit. Given the median home value in the area is $237,283, the implied gross yield based on the FMR would be roughly 4.4%. This is calculated by dividing the annual rental income ($1020) by the median home value ($237,283).
Next, let's look at the market rent, which stands at $955 according to the Census ACS data. This equates to a monthly rental income of about $79.58. The gross yield based on market rent would then be approximately 4.0% when compared to the median home value. This calculation is derived by taking the annual market rent ($955) and dividing it by the median home value ($237,283).
The difference between these two yields is significant, with the FMR providing a higher gross yield than the market rent. However, the reality of the situation is more nuanced. With only an 18.4% renter density, it becomes clear that the majority of homes in ZIP 75140 are owner-occupied. This suggests that the market rent scenario might be more reflective of actual rental conditions, considering the limited number of renters in the area.
The fact that the days on market (DOM) is listed as N/A indicates either a very efficient rental market or a lack of sufficient data to provide a meaningful average. In either case, it underscores the importance of understanding local market dynamics. For instance, a lower renter density could mean that landlords might have to offer competitive rates to attract tenants, which aligns more closely with the market rent scenario.
In summary, while the FMR presents a slightly more attractive gross yield at 4.4%, the market rent scenario, with a yield of 4.0%, seems more realistic given the low renter density in Grand Saline, TX. Investors should carefully consider these factors when evaluating potential returns on investment properties in this ZIP code.
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.