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 |
|---|---|---|---|---|
| 3BR | $1,340 | $325,628 | 0.41% | F |
| 4BR | $1,510 | $655,421 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 75163 is situated in a neighborhood characterized by a relatively small population of 2,443 residents. Only 15.2% of these residents are renters, indicating a primarily owner-occupied area. The median household income stands at $60,462, suggesting a middle-class community where most residents have stable financial situations. The median home value in this ZIP code is $306,050, which aligns with the typical cost of housing in this region.
Transitioning into the economic landscape of renting in 75163, the Fair Market Rent (FMR) as set by the U.S. Department of Housing and Urban Development for the fiscal year 2026 is $970. This figure contrasts sharply with the actual market rent, which is reported at $794 according to the Census ACS. This discrepancy highlights a potential opportunity for landlords and small-portfolio investors to either increase their rental rates closer to the FMR or to leverage the lower market rents to attract tenants who qualify for Section 8 vouchers.
In terms of investment strategy, ZIP 75163 appears to be suitable for both hands-off voucher operators and hands-on value-add buyers. For those looking to operate hands-off, the presence of Section 8 tenants can provide a steady stream of rental income guaranteed by the government. However, the limited number of renters might make it challenging to fill all units with voucher holders. On the other hand, value-add buyers could find opportunities to improve properties and potentially command higher rents, approaching or even exceeding the FMR. Given the lower market rent compared to the FMR, there's a clear margin for increasing rental rates if improvements are made to the properties.
Investors should consider the relatively low percentage of renters when deciding whether to pursue a hands-off or active management approach. While the neighborhood’s demographics support a stable investment environment, the choice between these strategies will depend on the investor’s goals and willingness to engage in property management activities.
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.