Location: Marion 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 | $1,080 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,700 | $318,456 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75640 reveals several key points that landlords and small-portfolio investors should consider before making any investment decisions.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1220, which is significantly lower than the market rent of $1,564 reported by the Census ACS. This discrepancy suggests that landlords might struggle to cover costs if they adhere strictly to the FMR guidelines, indicating that the rent math does not work in favor of landlords in this area.
Moving on to the affordability of acquisitions, the median home value in ZIP 75640 stands at $285,492. However, due to the lack of data on the average number of days on market (DOM) and the low percentage of homes that have been subject to price cuts (0.3%), it appears that the real estate market in this area is stable and possibly even favorable for acquiring properties without facing significant competition or the need to negotiate drastically lower prices. This stability could be beneficial for investors looking to enter the market without the risk of overpaying.
Lastly, we must evaluate the tenant demand. With a population of 6,142 and a renter share of 9.7%, the demand for rental properties is relatively low. This means that finding tenants might be challenging, especially if the rental rates are set at the higher market rate rather than the FMR. Landlords will need to ensure their properties offer competitive amenities and pricing to attract and retain tenants in this environment.
In summary, while the rent math does not work in favor of landlords due to the disparity between FMR and market rent, the acquisition of properties appears to be affordable and stable. However, the low tenant demand poses a significant challenge. Investors must carefully balance these factors and consider additional strategies to enhance property appeal and manage occupancy rates effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.