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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $302,305 | 0.43% | F |
| 3BR | $1,750 | $282,696 | 0.62% | D |
| 4BR | $1,940 | $438,983 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 75709 does not favor landlords. The Fair Market Rent (FMR) set at $1,390 for the fiscal year 2024 is higher than the market rent reported by the Census ACS, which stands at $1,215. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate.
Acquisition of properties in this area is relatively affordable. The median home value is $284,061. However, with no available data on days on market (DOM) and a very low percentage of homes needing price cuts (0.1%), it's challenging to assess the competitive landscape fully. Landlords should consider these factors carefully before making an investment decision.
Tenant demand is present but limited. With a total population of 6,015, the renter share is 30.4%. This indicates that about 1,828 individuals are potential renters. While this represents a significant portion of the local market, the overall number of potential tenants is modest given the size of the ZIP code.
Verdict: ZIP 75709 offers a mixed outlook for landlords and small-portfolio investors. Although property acquisition is affordable, the higher FMR compared to the actual market rent poses a risk. Tenant demand exists but is constrained by the relatively small population. Investors should proceed with caution, focusing on properties where they can leverage economies of scale or where they can offer amenities that justify the higher rent rates.
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.