Location: Lamar County, TX | Metro: Fannin 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 | $970 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $321,577 | 0.51% | F |
U.S. Census Bureau data (2024)
In ZIP 75486, investors might question the viability of Section 8 properties due to concerns over financial returns and demand. Here’s a detailed analysis addressing those concerns:
Will FMR $1,370 (metro FY 2026) cover the mortgage on a $312,676 home?
The Fair Market Rent (FMR) of $1,370 is the county-wide rent limit used by most housing authorities. To determine if this amount covers the mortgage on a $312,676 home, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment for a $312,676 home would be approximately $1,470. This means the FMR of $1,370 would not fully cover the mortgage, resulting in a shortfall of $100 per month. Landlords would need to either increase their equity stake or rely on additional sources of income.
Is there enough renter demand at 3.2%?
The renter demand in ZIP 75486 is measured at 3.2%. This percentage represents the share of the population that relies on rental assistance. A 3.2% demand rate suggests a moderate level of interest in Section 8 properties. However, the actual number of potential tenants depends on the total population and the number of available units. Given the limited data, it's challenging to quantify the exact number of interested renters. Nonetheless, a 3.2% demand rate indicates that there is a steady but not overwhelming interest in rental assistance.
Will vouchers keep pace with N/A market rents?
The availability of vouchers in relation to market rents is crucial for ensuring that the subsidy covers the cost of renting. Unfortunately, the data does not provide specific information on voucher availability or adequacy in ZIP 75486. However, historically, voucher payment standards have been adjusted to reflect changes in market rents. For ZIP 75486, the use of SAFMR (Small Area Fair Market Rent) could potentially offer higher rent limits compared to the broader metropolitan FMR. To confirm the adequacy of vouchers in your specific ZIP code, use the [Section 8 Rent Calculator](https://www.voucherrents.com/rent-limits) to verify the exact payment standards and compare them against current market rents.
To summarize, while the FMR of $1,370 may not fully cover the mortgage on a $312,676 home, there is a moderate level of renter demand. The adequacy of vouchers in keeping pace with market rents remains uncertain without specific data, but tools such as the Section 8 Rent Calculator can help landlords assess their situation accurately.
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.