Location: Wood County, TX | Metro: Rains 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 | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $380,518 | 0.36% | F |
U.S. Census Bureau data (2024)
In evaluating whether to invest in ZIP code 75410 for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,060 cover the debt service on a property priced at $320,435?
Yes: The FMR of $1,060 is sufficient to clear the debt service on a $320,435 property, assuming typical financing terms.
No: If the FMR does not cover the debt service, investing in this area would be financially unviable for Section 8 properties.
It Depends: This answer applies if you need further clarification on the financing details. For instance, with a 30-year fixed-rate mortgage at 4%, the monthly principal and interest payment on a $320,435 property would be approximately $1,500. Thus, the FMR of $1,060 does not cover this debt service alone. However, if you can secure a lower interest rate or a shorter loan term, the FMR might suffice.
2) Is the market rent of $864 above, at, or below the FMR?
Above: If the market rent exceeds the FMR, then Section 8 properties may struggle to compete with the private rental market. Landlords would need to consider other factors such as the demand for affordable housing.
At: With market rent equal to the FMR, Section 8 properties can match the market rates. This scenario is ideal for maximizing occupancy and minimizing vacancy risks.
Below: If the market rent is below the FMR, Section 8 properties could command higher rents relative to the local market, making them more attractive to tenants and potentially reducing competition.
3) Are 13.5% of residents renters and the Days on Market (DOM) sufficient to indicate enough demand?
Yes: A 13.5% rental rate suggests a moderate demand for rental properties. However, the absence of DOM data makes it difficult to assess how quickly properties are being rented out. Without DOM data, we must rely on the rental rate and assume that demand is adequate.
No: If the rental rate were significantly lower and DOM was high, indicating long wait times for properties to rent, then demand would be insufficient for a successful Section 8 investment.
It Depends: Given the limited data, especially the missing DOM figure, the viability of an investment hinges on additional research. Investigate the local rental market trends and the number of Section 8 vouchers available to better understand the demand.
In conclusion, based on the provided data, ZIP 75410 presents a mixed picture for Section 8 investments. The FMR does not inherently cover debt service on a $320,435 property, but favorable financing terms could make it viable. Market rent being below the FMR is advantageous, but the rental rate and lack of DOM data suggest that demand analysis requires further investigation.
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.