Location: Cass County, TX | Metro: Cass County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The ZIP code 75563 is situated in a suburban neighborhood characterized by a modest population of 4,033 residents. The area has a relatively low percentage of renters at 26.2%, indicating a predominantly owner-occupied community. The median household income in this region stands at $52,565, which reflects a middle-class demographic. Median home values are notably lower at $144,518, suggesting an affordable housing market.
Moving into the economic dynamics of rental properties, the Fair Market Rent (FMR) for ZIP 75563 is set at $970 for the fiscal year 2026. However, the actual market rent, as per the Census ACS data, is significantly lower at $580. This discrepancy between FMR and market rent presents an opportunity for investors to leverage the higher voucher amounts to either increase their profit margins or improve property quality without raising rents beyond the subsidized levels.
Given these figures, ZIP 75563 could be a suitable location for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the lower market rent compared to FMR means that they can manage properties with minimal effort while still benefiting from the higher subsidy payments. For value-add buyers, there's potential to renovate or upgrade properties using the excess subsidy funds, thereby attracting tenants willing to pay closer to the FMR rate, or simply improving the overall living conditions and property value.
In summary, ZIP 75563 offers a balanced environment for real estate investment, particularly under Section 8, with opportunities for passive income through voucher programs and active management through property improvements. Landlords and small-portfolio investors should consider the local context and their investment goals when deciding whether to operate hands-off or pursue a more engaged strategy.
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.