Location: Fannin County, TX | Metro: Fannin 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 | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $149,378 | 0.73% | D |
| 3BR | $1,510 | $226,346 | 0.67% | D |
| 4BR | $1,820 | $329,888 | 0.55% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 75418 (Bonham, TX) on the yield and stability axes reveals a market that offers moderate potential for both cash flow and investment security.
On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the market rent is higher at $1,278. This indicates a rental market where landlords can potentially charge above the FMR, thereby increasing their rental income per unit. However, the median home value of $230,783 suggests that property acquisition costs are relatively high compared to some other markets, which can reduce overall yield when considering the initial investment required.
Moving to the stability axis, Bonham's rental market shows a moderate level of stability. With 24.8% of the population being renters, there is a consistent demand for rental properties. The lack of data on the average days on market (DOM) makes it difficult to assess how quickly units might turn over, but the median household income of $68,918 provides insight into the financial health of potential tenants. This income figure is lower than the national average, which could imply a higher risk of default if the cost of living is also lower, making it important for landlords to screen tenants carefully.
To summarize, ZIP 75418 is best categorized as a steady-cashflow zone. The ability to charge above the FMR supports a decent cash flow, though the high median home value means the yield won't be exceptionally high. Stability is ensured by a reliable percentage of renters, but the relatively low median income necessitates careful tenant selection to maintain financial security. Landlords should expect a moderate level of return on investment with a need for attention to tenant quality to ensure steady cash flow and avoid vacancy issues.
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.