Location: Tyler, TX | Metro: Tyler, TX MSA
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 | $890 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $292,885 | 0.55% | F |
| 4BR | $1,790 | $443,922 | 0.4% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 75706 stands at $61,687, which places significant constraints on what a typical household can afford in terms of rent. The market rate for rent, according to the Census ACS, is $973 per month. This amount represents a substantial portion of a household's monthly budget, especially considering the average income levels.
Comparatively, the Fair Market Rent (FMR) set by the government for this ZIP code in fiscal year 2024 is slightly higher at $1020. However, it's important to note that the FMR is intended to reflect the rental market rates and is used as a benchmark for housing assistance programs such as Section 8 vouchers. For landlords, this means that the maximum amount they could receive through a voucher program would be around $1020, depending on the specifics of the property and the local housing authority policies.
In ZIP 75706, with a total population of 9,560 and 22.3% of residents being renters, the competition among landlords is notable but not overwhelming. Given the affordability gap between median income and both market and FMR rates, many renters might find it challenging to pay the full market rate without financial assistance.
Landlords should consider the benefits of accepting Section 8 vouchers. While the rent paid through vouchers is capped at the FMR of $1020, it provides a stable source of income and ensures that their units are occupied by tenants who can reliably meet their financial obligations. On the other hand, relying solely on market-rate rents could lead to vacancies if potential tenants cannot afford the costs.
Takeaway: For landlords in ZIP 75706, accepting Section 8 vouchers offers a practical strategy to ensure consistent occupancy and a reliable stream of income. The decision to focus on voucher versus cash-paying tenants should weigh the stability of voucher payments against the potential for higher market-rate rents, considering the local economic conditions and tenant preferences.
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.