Location: Wood County, TX | Metro: Hopkins 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 | $850 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $463,904 | 0.33% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in ZIP code 75497 under the Section 8 program are significant. Tenant turnover is a critical issue, as the market rent stands at $1,109, while the Fair Market Rent (FMR) for the fiscal year 2026 is set at $1,080. This difference can lead to a higher turnover rate because tenants might prefer properties that offer closer alignment with their budget. Additionally, vacancy exposure remains a concern due to the lack of available data on days on market (DOM), which makes it difficult to predict how long a property might remain vacant. The typical home value in this area is $380,678, and the median income is $56,205. Given these figures, there is an increased risk of deferred maintenance, as lower-income households might struggle to cover the costs associated with maintaining a higher-value property.
However, these risks must be weighed against the high concentration of renters in ZIP 75497, where 17.7% of the population are renters. High renter density typically translates into a greater demand for housing vouchers, which can provide a steady stream of qualified tenants who are willing and able to pay the stipulated amount through the Section 8 program. This demographic characteristic offers a counterbalance to the potential downsides, as it suggests a stable pool of tenants who are likely to stay longer and maintain the property.
In conclusion, despite the challenges posed by tenant turnover and vacancy exposure, the high renter share in ZIP 75497 indicates a robust demand for subsidized housing. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.