Location: Red River County, TX | Metro: Lamar County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 75436 in the Red River County, TX metro area reveals a competitive landscape where landlords and small-portfolio investors must carefully consider their unit offerings. The HUD Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2026, which is notably below the current market rent of $1,125 as reported by the Census ACS. This gap means that voucher tenants will only cashflow in premium units that are priced closer to the FMR. Standard units renting at the market rate of $1,125 would result in marginal cashflow or potentially negative cashflow for landlords participating in the Section 8 program.
To further analyze the investment potential, we can look at the median home value in ZIP 75436, which stands at $246,015. This figure allows us to derive a rent-to-price ratio, indicating that a property in this area would need to be rented out for approximately 47 years at the current market rent to match the median home value. This calculation underscores the importance of considering long-term rental income versus immediate purchase price when deciding between buying or renting properties in this market.
In terms of the broader real estate market, the median days on market (DOM) and the percentage of price cuts are not available, but given the disparity between the FMR and market rent, it is evident that the rent-versus-buy dynamics are heavily skewed towards rental investments. The limited cashflow potential for standard units suggests that appreciation or stability might be more compelling angles for investors in this ZIP code.
The strongest investor angle in ZIP 75436 is likely stability, given the consistent demand for rental housing and the predictable nature of government-subsidized vouchers. While cashflow is limited and appreciation may not be robust due to the pricing dynamics, the steady stream of tenants and rents ensures a reliable return on investment over time.
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.