Section 8 Fair Market Rent (FMR) for ZIP 75426 - 2027

Location: Red River County, TX | Metro: Red River County, TX

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$810
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,351

Median Household Income

$35,938

Housing Units

2,653

Renter Percentage

37.5%

Occupancy Rate

77.4%

Renter Occupied

769

In evaluating whether to purchase property in ZIP code 75426 for Section 8 investment, follow this decision tree:

Step 1: Determine if the Fair Market Rent (FMR) of $970 per month can cover the debt service on a property valued at $144,840. The FMR must exceed the monthly mortgage payment and other expenses to ensure profitability. If the FMR does not cover these costs, the answer is No.

Step 2: Compare the FMR of $970 against the average market rent of $1,088 as reported by the Census ACS. There are three possible outcomes:

If the market rent is significantly higher than the FMR, such as in this case where it is $118 more, then the area is less attractive for Section 8 properties because tenants may prefer non-subsidized housing. This leads to a No recommendation.
If the market rent equals the FMR, the area is neutral for Section 8 investment. Landlords will be able to charge the FMR without losing out to non-subsidized housing, resulting in an It Depends outcome based on other factors like demand and vacancy rates.
If the market rent is below the FMR, the area is more attractive for Section 8 investment since subsidized tenants may find it easier to afford housing compared to the market. This scenario would lead to a Yes recommendation.

Step 3: Assess the rental demand. In ZIP 75426, 37.5% of residents are renters. However, the Days on Market (DOM) data is unavailable, making it difficult to gauge how quickly rental units are occupied. Without this information, the demand analysis remains inconclusive. Given the current data, if the FMR cannot cover debt service or if market rents are significantly higher, the answer is No. If market rents equal the FMR, the answer is It Depends on the DOM and other economic factors. Only if market rents are below the FMR and there is sufficient demand could the answer be Yes.

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.