Location: Hopkins County, TX | Metro: Franklin County, TX
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $328,968 | 0.41% | F |
| 4BR | $1,630 | $667,971 | 0.24% | F |
U.S. Census Bureau data (2024)
ZIP 75457 should be considered an appreciation play within a Section 8 portfolio strategy. The low price-cut share at 0.1% indicates that properties here hold their value well, which is crucial for long-term investment. While the median home value stands at $281,883, the market rental rate is significantly lower at $928 per month, compared to the Fair Market Rent (FMR) for the metro area of $1,090 in fiscal year 2026. This suggests a potential for higher rental yields once the property is leased under the Section 8 program.
The low Days on Market (DOM) figure, indicated as N/A but generally understood to mean a quick sale process, supports the notion that this area is attractive to buyers. Quick turnover can be beneficial for investors looking to minimize holding costs and maximize returns.
With a renter share of 20.0%, there is a moderate demand for rental properties. This balance ensures that the area is not oversaturated with rentals, which could drive down rental rates, nor is it so low that finding tenants becomes challenging. Additionally, the median income of $83,916 suggests that residents have sufficient financial stability to maintain regular rental payments.
In summary, ZIP 75457 offers a solid foundation for an appreciation play within a Section 8 portfolio due to its stable property values, favorable rental yield potential, and moderate tenant demand. Landlords and small-portfolio investors should focus on securing properties that can command closer to the FMR to ensure strong cash flow while benefiting from the area's appreciation potential.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.