Location: Henderson 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 | $750 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $200,736 | 0.5% | F |
| 3BR | $1,340 | $283,042 | 0.47% | F |
| 4BR | $1,510 | $651,553 | 0.23% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 75148 in Malakoff, TX, hinges on the balance between yield potential and market stability. To analyze this area effectively, we must consider the Federal Market Rent (FMR) and the median home value, alongside the percentage of renters and average income levels.
Yield Potential: The FMR for the metro area in fiscal year 2026 is $970, while the market rent in ZIP 75148 is $899. This indicates that the rental market is slightly below the metro average, suggesting a moderate yield potential. However, the median home value stands at $277,855, which is notably higher than the income level of $68,569. This implies that the housing market is relatively expensive compared to local incomes, potentially limiting affordability and affecting rental demand.
Market Stability: With 23.1% of residents being renters, the rental market is smaller relative to homeownership, indicating a less stable tenant pool. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, but the lower rental rates compared to the metro average suggest some stability in maintaining occupancy. The income figure of $68,569 provides insight into the financial capability of the residents to sustain rent payments, though it is insufficient to cover the median home value without significant financial strain.
Based on these figures, ZIP 75148 leans towards being a steady-cashflow zone. The rental rates are close to the metro average, ensuring a consistent income stream, albeit not at premium levels. The relatively low percentage of renters and the high median home value imply that the area has a strong homeowner base, which contributes to long-term stability. While the yield is not exceptionally high due to the lower-than-metro rental rates, the combination of factors suggests a reliable, if modest, return on investment rather than the high-risk, high-reward scenario typical of flip-style markets.
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.