Location: Panola County, TX | Metro: Rusk County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 75652 reveals that the Fair Market Rent (FMR) set at $1000 for fiscal year 2024 exceeds the average market rent of $988 based on Census ACS data. This creates a positive gap of $12, or 1.22%, in favor of landlords participating in the Section 8 program.
This gap makes voucher tenants an attractive option for yield-focused landlords and small-portfolio investors. By renting to voucher holders, landlords can charge closer to the FMR rate rather than the lower market rate, thereby increasing their rental income per unit. The higher guaranteed income from the government vouchers reduces financial risk compared to relying solely on market rents.
In ZIP 75652, where 28.4% of residents are renters, the median home value stands at $189,597, and the median income is $69,250. These factors suggest a diverse but somewhat economically constrained rental market. The presence of Section 8 vouchers helps stabilize the rental income for properties, ensuring that landlords receive a consistent and slightly above-market rate.
Moreover, the participation in the Section 8 program can be particularly beneficial given the economic profile of the area. With a median income of $69,250, many potential tenants may struggle to afford market rents without assistance. Vouchers ensure that these individuals can still pay a substantial portion of the rent, with the government covering the rest, making it a win-win situation for both tenants and landlords.
The slight premium landlords can achieve by participating in the Section 8 program, combined with the economic realities of ZIP 75652, positions voucher tenants as a strategic choice for maximizing yield while serving a community that values affordable housing solutions.
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.