Section 8 Fair Market Rent (FMR) for ZIP 75633 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$810
2 Bedrooms	$1,060
3 Bedrooms	$1,310
4 Bedrooms	$1,480
5 Bedrooms	$1,717
6 Bedrooms	$1,923
7 Bedrooms	$2,077
8 Bedrooms	$2,181

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 75633 in Panola County, TX, is best suited as a **cash-flow anchor** within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 75633 in fiscal year 2024 is set at $1010 for a one-bedroom unit. In contrast, the current market rent is approximately $814, creating a spread of $196 between the FMR and market rent. This spread indicates that properties in this ZIP code can generate positive cash flow when rented under the Section 8 program. The median home value in ZIP 75633 is $200,819, which is relatively low compared to many other areas in the United States. This makes it feasible for landlords to acquire properties at reasonable prices and still benefit from the higher FMR rates offered by the Section 8 program. Furthermore, the ZIP code has a 0.2% price-cut share, indicating that very few homes are being sold below their asking price. This suggests a stable market where property values are unlikely to decline significantly, providing security for long-term investments. The N/A-day Days on Market (DOM) implies that homes are typically sold quickly, reducing the risk of prolonged vacancies. While ZIP 75633 does offer some potential as an appreciation play due to its stable market conditions, the primary role it serves in a Section 8 portfolio is that of a cash-flow anchor. The significant difference between the FMR and market rent ensures steady, reliable income, making it an ideal choice for landlords looking to stabilize their cash flows.

The 23.9% renter share also supports this strategy, as there is a notable portion of the population already accustomed to renting, which can be advantageous for maintaining occupancy rates. Additionally, the median income of $66,102 suggests that residents are financially capable of participating in the Section 8 program.

In conclusion, ZIP 75633 should be prioritized as a cash-flow anchor within a Section 8 portfolio strategy, given the favorable spread between FMR and market rents and the overall stability of the real estate market in this area.

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.