Location: Hopkins County, TX | Metro: Hopkins County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP code 75420 reveals a challenging landscape when it comes to housing affordability. The median household income stands at $72,521, which is a solid figure for many areas. However, without specific market rate data, we must rely on the Fair Market Rent (FMR) as an indicator. For fiscal year 2026, the FMR in the metro area is set at $1,020. This means that a household earning the median income would spend approximately 16.5% of their annual income on rent if they were to pay the FMR.
To put this into context, let's consider the typical budget allocation for housing. Financial experts generally recommend that no more than 30% of a household's income should be spent on housing costs. In ZIP 75420, where the FMR is $1,020, this would equate to roughly $12,240 annually, or 16.9% of the median income. This suggests that renters in this area are operating within a reasonable budget for housing expenses based on the FMR alone.
The affordability gap becomes more apparent when considering the overall cost of living and other financial obligations that a household might face. Given the limited population of 1,041 and the relatively low percentage of renters at 8.5%, landlords in this ZIP code will likely face stiff competition for tenants who qualify for vouchers. The voucher payment standard of $1,020 aligns closely with the FMR, making it a viable option for landlords seeking stable, long-term tenants.
Landlords in ZIP 75420 should take note of the following strategy considerations. Accepting voucher payments can provide a steady stream of income and reduce vacancy rates, given the alignment with the FMR. However, the low percentage of renters and small population size indicate that the pool of potential cash-paying tenants could also be limited. Landlords should weigh the benefits of accepting vouchers, such as guaranteed rental income and reduced risk of non-payment, against the administrative burdens and potential delays in receiving payments.
In conclusion, while the median income in ZIP 75420 supports the ability to afford the FMR, the limited number of renters suggests that landlords need to be strategic. Voucher acceptance offers a practical solution to compete for tenants in this tight market. Landlords should prepare for the realities of both voucher and cash-pay tenant markets, ensuring they have a plan that maximizes occupancy and minimizes financial risk.
Data Sources: FMR data from HUD (2027). 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.