Location: Lamar County, TX | Metro: Lamar 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 | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $199,383 | 0.51% | F |
| 3BR | $1,330 | $260,894 | 0.51% | F |
| 4BR | $1,340 | $379,385 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 75462 in Paris, TX, provides a clear picture of the potential returns for landlords and small-portfolio investors. Using the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,010 per month (for FY 2026), the total annual income would be $12,120. Dividing this by the median home value of $277,691 yields an implied gross yield of approximately 4.37%. This calculation assumes that the property can be rented out at the FMR rate, which is often set by HUD for the area.
In contrast, using the market rent figure of $929 per month from the Census ACS, the total annual income drops to $11,148. When this amount is divided by the median home value, it results in a gross yield of about 4.01%. The difference between these two yields highlights the impact of HUD's FMR versus actual market conditions on investment returns.
The 24.2% renter density in Paris, TX, suggests that there is a significant portion of the population that does not own homes. However, this alone does not provide enough insight into the likelihood of achieving either the FMR or market rent rates. Additionally, the N/A-day Days on Market (DOM) indicates incomplete data regarding how quickly properties are rented, which could affect vacancy rates and thus overall rental income.
Given the circumstances, the market rent scenario with a gross yield of 4.01% is more likely to represent realistic expectations for landlords and investors. While the FMR-based yield of 4.37% is higher, it is important to consider that actual rental prices may differ from government-set FMRs due to local market dynamics. Therefore, basing investment decisions on the lower but more probable market rent figure would be prudent. This ensures that investors are prepared for the potential challenges in achieving the higher FMR-based yield.
Investors should also factor in the cost of maintaining properties under Section 8, which includes compliance with HUD standards, potential for higher turnover, and the administrative burden of managing subsidized housing. These factors can significantly impact the Net Operating Income (NOI), even if the gross yield appears attractive.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.