Location: Lamar County, TX | Metro: Lamar County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 75421 in the Lamar County, TX metro area reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2026, while the Census ACS reports a market rent of $880. This means that voucher tenants will generally cashflow at the FMR level, providing a buffer of $90 per unit above the average market rent.
To further analyze the investment potential, consider the median home value in ZIP 75421, which stands at $238,735. Using this figure, we can calculate a rent-to-price ratio of approximately 0.49%, indicating that rental income represents a significant portion of the property's value. This ratio suggests that properties in this area offer strong value for both rental and ownership purposes.
Note that the data does not provide specific figures for the median Days on Market (DOM) or the percentage of price cuts, which would be useful for understanding the dynamics between renting and buying. However, the existing information indicates that the area is favorable for Section 8 investors due to the positive cash flow potential from the difference between HUD FMR and market rent.
The strongest investor angle in ZIP 75421 is cashflow. With a consistent $90 surplus per unit above the market rent, landlords and small-portfolio investors can expect reliable income from their properties without needing to rely on premium units or future appreciation. The current pricing structure supports steady returns, making it an attractive option for those prioritizing financial stability and predictable earnings.
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.