Location: Tyler, 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 | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $149,514 | 0.81% | C |
| 3BR | $1,620 | $237,464 | 0.68% | D |
| 4BR | $1,790 | $347,018 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis for Section 8 real estate in ZIP code 75662, located in Kilgore, TX, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1080, while the market rent, as measured by ZORI, stands at $1,166. This represents a difference of $86, or approximately 7.9%, indicating that landlords can expect to receive slightly less than market rates when renting to voucher tenants.
The lower FMR compared to the market rent means that landlords who accept Section 8 vouchers will be renting their properties below the open-market rate. In Kilgore, TX, where 21.9% of residents are renters and the median home value is $213,509, this gap can impact profitability. With a median income of $70,096, the financial stability of voucher tenants is guaranteed by the government, which ensures timely payments. However, the reduced rental income must be weighed against the benefits of stable tenancy and the government's role in covering maintenance costs, which can offset the lower rent.
To summarize, the gap between the FMR and market rent in ZIP 75662 highlights the trade-off landlords face when choosing to accept Section 8 vouchers. While they will earn about $86 less per month than what the market offers, the security of consistent government-backed payments can make this an attractive option for yield-focused investors.
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.