Section 8 Fair Market Rent (FMR) for ZIP 75703 - 2027

Investment Score for ZIP 75703

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,170
2 Bedrooms	$1,440
3 Bedrooms	$1,940
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,440	$226,882	0.63%	D
3BR	$1,940	$311,302	0.62%	D
4BR	$2,090	$478,093	0.44%	F
5BR	$2,424	$820,211	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75703 (Tyler, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75703 is set by HUD for the year 2026 as follows: - 0BR: $1110 - 1BR: $1230 - 2BR: $1510 (which represents 22.9% of the median household income) - 3BR: $2020 - 4BR: $2240 These figures represent the maximum rent that a Section 8 voucher holder can pay based on the size of the unit they need. However, the actual rents in Tyler, TX, might be higher or lower than these FMRs. The price-to-FMR ratio for a 2BR unit is 12.5x, meaning that the median home value on Zillow is $227,028. This suggests that the actual rental prices could be significantly higher than the FMRs, which would create constraints for voucher holders. They may find it challenging to secure housing that meets their needs without exceeding the voucher limits. #### Affordability & Renter Profile ZIP code 75703 has a population of 46,039, with 42.9% being renters. This indicates a substantial demand for rental properties. The occupancy rate of 85.7% further supports the notion that the rental market is relatively tight, with most units occupied. Given the median household income of $79,194, the 2BR FMR of $1510 represents 22.9% of the median income. This suggests that while the FMR is affordable relative to the median income, it still places a significant burden on households relying solely on the voucher system. The high price-to-FMR ratio implies that the market is likely overpriced compared to what voucher holders can afford. This could lead to a situation where many renters, especially those on Section 8 vouchers, struggle to find suitable housing within their budget. As a result, there might be a concentration of voucher holders in lower-priced units, potentially leading to overcrowding and reduced living standards. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. The FMR for a 2BR unit is $1510, which is notably lower than the median home value of $227,028. Given the high price-to-FMR ratio, it is unlikely that investors will find properties renting at FMR levels that offer strong cash flow. However, the tight rental market and high occupancy rates suggest that there is a consistent demand for rental properties. This could mean that investors who can secure properties below the median home value and rent them out at or slightly above the FMR levels might still achieve positive cash flow. The challenge lies in finding such deals, given the overall high property values in the area. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should consider focusing on 0BR, 1BR, and 2BR units, as these are more likely to be rented by Section 8 voucher holders. The FMR for a 2BR unit is $1510, which is only 22.9% of the median household income. This makes it a more feasible option for low-income renters. Additionally, the lower number of bedrooms means that the units are less expensive to purchase and maintain. 2. **Consider Renovation Projects**: Given the high price-to-FMR ratio, purchasing older or less desirable properties and renovating them to meet modern standards could be a viable strategy. By doing so, investors can potentially increase the rental income while still remaining within the FMR guidelines. For example, a 2BR unit could be renovated and rented out at $1510 per month, which is within the FMR but could provide better returns if the renovation costs are managed effectively. 3. **Explore Subsidized Housing Programs**: Investors should explore additional subsidized housing programs beyond just Section 8. These programs often have different rent structures and may provide higher rental income. Additionally, participating in multiple subsidy programs can help diversify the tenant base and reduce dependency on a single source of funding. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **Skip** this ZIP code unless they can secure properties at significantly below the median home value. While there is a strong demand for rental properties, the current pricing structure makes it difficult to achieve positive cash flow at FMR levels. Investors should look for areas with a lower price-to-FMR ratio or consider alternative investment strategies that include subsidies other than Section 8.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.