Location: Rusk County, TX | Metro: Rusk County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 75681 revolves around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $960, while the Census American Community Survey (ACS) indicates a market rent of $1,092. This results in a gap of $132, or approximately 13.75%, between what voucher holders can pay and the open-market rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with accepting housing vouchers. The discrepancy means that voucher tenants will pay less than the market rate, which could impact profitability. However, the stability of rental income provided by government-backed vouchers can still present a compelling yield opportunity, especially when considering the local context.
In ZIP 75681, 17.0% of residents are renters, indicating a moderate demand for rental properties. The median home value is $211,664, suggesting a middle-class neighborhood where homeownership is common but not universal. With a median income of $48,079, many households might find it challenging to afford the $1,092 market rent, making them eligible for Section 8 assistance.
Despite the gap, the consistent payment from the housing authority can be an attractive feature for landlords who prioritize steady cash flow over maximizing short-term rental income. Moreover, the rental vacancy rate and competition for tenants must be factored into the decision. If the area has a low vacancy rate, landlords might find that accepting voucher tenants is necessary to keep units occupied and maintain a steady income stream.
To summarize, while the FMR is $132 below the market rent, the benefits of guaranteed payments and the potential for a stable tenant base make ZIP 75681 a viable investment option for those willing to navigate the complexities of Section 8 tenancy. The local context supports this strategy, with a mix of homeowners and renters, and median incomes that align well with the eligibility criteria for housing vouchers.
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.