Location: Harrison County, TX | Metro: Longview, TX 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 | $910 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $146,397 | 0.78% | D |
| 3BR | $1,450 | $232,826 | 0.62% | D |
| 4BR | $1,530 | $319,898 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 75601, located in Longview, Texas, within Gregg County, involve understanding the SAFMR (Small Area Fair Market Rent) and comparing it to the local market rent. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1000. This means that landlords participating in the Section 8 program can expect to receive up to $1000 per month from the government for such units.
The local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,181 for a two-bedroom apartment. This suggests that landlords could potentially charge more than the SAFMR if they were not participating in the Section 8 program. However, when accepting a Section 8 tenant, the total rent cannot exceed the SAFMR, which is $1000 in this case.
Section 8 vouchers cover the difference between what a tenant can afford and the SAFMR. Typically, tenants contribute 30% of their adjusted income toward rent. If a tenant's monthly adjusted income is $1,000, then they would pay $300 towards the rent. The remaining $700 would be covered by the housing authority under the voucher program. Additionally, there are utility allowances that vary but generally range from $200 to $300 per month, depending on the household size and local utility costs. These allowances do not increase the total rent reimbursement but provide extra funds specifically for utilities.
In ZIP 75601, landlords must understand that the actual reimbursement they receive will be the SAFMR minus the tenant's contribution. Given the SAFMR of $1000 and assuming a typical tenant contribution of 30%, the reimbursement would be $700. If the utility allowance is $250, this does not add to the rental income directly but helps the tenant manage living expenses.
The typical reimbursement gap in ZIP 75601 for a two-bedroom unit is $181, calculated by subtracting the SAFMR ($1000) from the local market rent ($1181). This means landlords who participate in the Section 8 program for a two-bedroom apartment in this ZIP code would see a shortfall of $181 compared to the market rent they could otherwise command. However, the program provides stability and a guaranteed payment, which can be beneficial for managing cash flow and reducing vacancy rates.
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.