Location: Henderson County, TX | Metro: Dallas, TX HUD Metro FMR Area
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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $197,526 | 0.54% | F |
| 3BR | $1,400 | $287,367 | 0.49% | F |
| 4BR | $1,580 | $559,074 | 0.28% | F |
| 5BR | $1,833 | $1,047,615 | 0.17% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 75156 (Payne Springs, TX) for Section 8 purposes, follow this decision tree based on the provided data.
1) Does the Fair Market Rent (FMR) of $1260 cover the debt service on a $272,476 property?
No: The FMR does not sufficiently cover the debt service. For a property priced at $272,476, typical debt service would be higher than $1260 per month, making it financially unviable to rely solely on Section 8 tenants without additional income sources or subsidies.
Yes: Proceed to the next question.
2) Is the market rent of $1,478 (ZORI) above, at, or below the FMR?
Above: The ZORI is higher than the FMR, indicating that market rents exceed what Section 8 tenants can pay. Landlords will need to consider whether they can attract non-Section 8 tenants willing to pay the ZORI or if they will accept lower rents from Section 8 tenants.
At or Below: Proceed to the next question.
3) Are 18.5% renters combined with a 113-day Days on Market (DOM) indicative of enough demand?
It Depends: With 18.5% of the population being renters and an average DOM of 113 days, there is moderate demand. However, the viability hinges on the landlord's tolerance for vacancy periods and their ability to manage properties effectively. A DOM of 113 days suggests a reasonable but not ideal market speed for finding tenants. Additionally, the percentage of renters indicates a smaller pool of potential Section 8 tenants compared to areas with higher rental rates.
In conclusion, the decision to invest in ZIP 75156 for Section 8 purposes is contingent upon the landlord's financial situation, willingness to accept lower rents relative to market value, and capability to handle potentially longer vacancy periods. The FMR of $1260 must first clear the debt service on a $272,476 property, which is unlikely given typical financing costs. Even if the ZORI were at or below the FMR, the combination of a relatively low renter population and moderate DOM rates suggest that while there is some demand, it may not be robust enough to ensure steady occupancy without significant effort.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.