Location: Cass County, TX | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
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 | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $192,754 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 75501 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment is set at $910 for fiscal year 2024. This figure is specific to this ZIP code, meaning it reflects the rental rates deemed fair within 75501.
Local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $932. This indicates that the average market rent slightly exceeds the SAFMR, leaving a potential gap for landlords participating in the Section 8 program.
A Section 8 voucher works by covering the difference between the tenant's contribution and the SAFMR. The tenant's portion is typically 30% of their income. For simplicity, let's assume a tenant's income is $1,820 per month, which is common in this area. Their contribution would be $546 (30% of $1,820).
The voucher also includes an allowance for utilities. In ZIP 75501, the utility allowance is around $200 per month. Therefore, the total reimbursement a landlord can expect from the voucher is $746 ($546 tenant contribution + $200 utility allowance).
To calculate the reimbursement gap, subtract the total voucher reimbursement from the SAFMR. In this case, the reimbursement gap is $164 ($910 SAFMR - $746 voucher reimbursement). This means landlords will receive $164 less than the SAFMR if they accept a Section 8 voucher for a two-bedroom unit.
Given that the local market rent is $932, the actual gap increases to $186 when compared to the ZORI. This gap represents the shortfall landlords must absorb if they choose to participate in the Section 8 program in ZIP 75501.
In summary, landlords in ZIP 75501 who accept a Section 8 voucher for a two-bedroom apartment will face a reimbursement gap of $164 compared to the SAFMR, and $186 compared to the local market rent as measured by ZORI.
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.