Location: Cass County, TX | Metro: Texarkana, TX-Texarkana, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 75556 provides a clear picture of potential investment returns based on Fair Market Rent (FMR) and market rent figures.
The annualized FMR for a 2-bedroom apartment in ZIP 75556 for fiscal year 2024 is $960. This translates into an implied gross yield of approximately 4.8%. In contrast, the market rent figure for a 2BR in the same area, according to the Census ACS, is $1,014 per month, resulting in a higher implied gross yield of around 5.1% annually.
Given the low median home value data available for ZIP 75556, it's challenging to calculate precise cap rates. However, we can infer that the gross yields based on the FMR and market rent offer valuable insights into the rental market dynamics.
The 16.6% renter density suggests that while there is a significant portion of homeowners, the rental market still has substantial activity. The lack of specific Days on Market (DOM) data makes it difficult to assess how quickly properties are leased, but it's reasonable to assume that the lower FMR scenario is more reflective of the realities faced by landlords participating in the Section 8 program.
While the market rent of $1,014 offers a slightly better gross yield at 5.1%, the FMR of $960, yielding 4.8%, is more likely to represent the actual income landlords can expect from tenants enrolled in the Section 8 program. This is because the FMR is set by HUD and reflects the maximum amount that Section 8 tenants can pay for rent in the area.
Investors should consider these gross yields when evaluating the potential returns of properties in ZIP 75556. While the higher market rent might seem attractive, the reality of Section 8 participation often means adhering to the lower FMR rates. Therefore, using the $960 FMR as a baseline for financial projections would be prudent for those considering Section 8 properties.
Data Sources: FMR data from HUD (2027). 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.