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 | $1,110 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $205,833 | 0.72% | D |
| 3BR | $2,000 | $308,310 | 0.65% | D |
| 4BR | $2,160 | $425,749 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 75707, located in Tyler, TX, Smith County, and part of the Tyler, TX MSA metro, presents a nuanced opportunity for landlords and small-portfolio investors. According to HUD Fair Market Rent (FMR) data for fiscal year 2024, the FMR for ZIP 75707 is set at $1,470. However, the current market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,558. This comparison reveals that voucher tenants would only marginally cashflow at the FMR rate, with a slight shortfall of $88 per unit.
To understand the investment potential further, consider the median home value in ZIP 75707, which is $306,021. The rent-to-price ratio can be calculated by dividing the ZORI rent of $1,558 by the median home value of $306,021. This results in a ratio of approximately 0.51%, indicating that rental income is relatively low compared to the purchase price of homes in the area. This metric is particularly relevant when evaluating the rent-versus-buy dynamics, as it suggests that buying properties for rental purposes may not yield high returns based solely on rental income.
The median Days on Market (DOM) is listed as N/A, which could imply that there isn't sufficient data to determine the average time it takes for a property to sell. Additionally, the price-cut share is noted at 0.2%, suggesting that very few listings require price reductions to attract buyers. While these metrics provide insight into the local real estate market, they do not significantly impact the decision-making process for Section 8 investors, who are primarily concerned with rental income stability.
The strongest investor angle in ZIP 75707 is stability. Given the consistent demand for affordable housing and the government's commitment to funding Section 8 vouchers, investors can expect reliable, long-term rental income with minimal risk of vacancy. While the cashflow is marginal at best, and appreciation may not be as robust due to the lower rent-to-price ratio, the predictability and security of Section 8 rents make this a solid choice for those seeking stable, steady returns.
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.