Location: Van Zandt County, TX | Metro: Van Zandt County, TX
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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $335,536 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 75754 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $1,093 being slightly below the Fair Market Rent (FMR) of $1,110 for fiscal year 2026 in the metro area. This discrepancy can lead to higher tenant turnover rates, as potential tenants may seek properties that offer the full FMR subsidy. Additionally, vacancy exposure is a risk due to the lack of available data on days on market (DOM), which indicates an uncertainty in how quickly rental units may be filled. The typical home value in the area stands at $313,993, while the median income is $69,815, suggesting a potential deferred maintenance issue. Landlords must be prepared to address maintenance needs promptly to avoid property deterioration, which can be costly.
Despite these risks, there are factors that mitigate the overall investment risk. The renter share in ZIP 75754 is notably high at 18.3%, indicating a dense population of renters. High renter density generally correlates with a higher demand for housing vouchers, which can stabilize occupancy rates. Moreover, the presence of a substantial number of renters often signals a diverse and dynamic local economy, which can provide a steady stream of tenants despite individual economic fluctuations.
In conclusion, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance in ZIP 75754 are balanced by the high renter density and strong demand for housing vouchers. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.