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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $288,919 | 0.56% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 75750 hinges on a balance between yield and stability. The Fair Market Rent (FMR) for the area stands at $1020 for fiscal year 2024, which is notably higher than the market rent of $943. This indicates a potential for higher rental yields compared to the broader market, making it attractive for investors seeking above-average returns.
However, the stability of the market must also be considered. With only 20.8% of residents being renters, the demand for rental properties is relatively low. This could lead to higher vacancy rates and greater competition among landlords, potentially affecting the overall stability of cash flow. Additionally, the median household income of $50,948 suggests that while there is some financial capacity among residents, it may not be sufficient to support consistently high rents without risk.
The home value of $238,289 further complicates the analysis. While this figure represents a significant investment, the disparity between the FMR and market rent implies that the area might not fully justify the premium placed on property values. Landlords and investors should weigh these factors carefully. On one hand, the potential for higher-than-market rental income exists; on the other, the relatively low percentage of renters and modest median income suggest a less stable environment for generating consistent cash flow.
In conclusion, ZIP 75750 leans towards being a high-yield but lower-stability market. It offers opportunities for increased rental income but requires careful consideration of the risks associated with tenant turnover and the broader economic conditions of the area. Investors should be prepared to manage these dynamics effectively to ensure profitability and sustainability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.