Location: Fannin County, TX | Metro: Fannin County, TX
| 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 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 75438 for Section 8 properties, follow these steps:
Step 1: Can the Fair Market Rent (FMR) of $990 cover the debt service on a $341,611 property?
No: The FMR of $990 is unlikely to cover the debt service on a property valued at $341,611. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high value of the property, the monthly expenses would likely exceed the FMR, making it unfeasible for a Section 8 tenant alone to support the financial burden.
Yes: If the debt service is lower than $990, then the FMR can potentially cover these costs. However, proceed to the next step for further analysis.
Step 2: How does the market rent of $1,273 compare to the FMR?
Above FMR: With market rent at $1,273, which is higher than the FMR of $990, you can consider renting to non-Section 8 tenants to achieve better returns. This makes the area less attractive for pure Section 8 investments but more so for general rental income.
At or Below FMR: If you decide to focus solely on Section 8 tenants, ensure that the $990 FMR can still cover all operational costs. If it cannot, then this investment is not advisable unless you can secure additional subsidies or funding sources.
Step 3: Is there sufficient demand with 30.6% of residents being renters and an unknown number of days on the market (DOM)?
It Depends: While 30.6% of residents being renters suggests a moderate level of demand, the unknown DOM figure leaves uncertainty about how quickly units can be filled. If DOM is low, indicating quick turnover, then demand is strong. Conversely, if DOM is high, it could signal a slower rental market.
In conclusion, investing in ZIP 75438 for Section 8 properties hinges on the ability of the FMR to cover debt service and the comparison between market rent and FMR. Demand appears moderate but requires further investigation into DOM to make a fully informed decision.
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.