Location: Cherokee County, TX | Metro: Cherokee 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $146,600 | 0.7% | D |
| 3BR | $1,310 | $219,698 | 0.6% | F |
| 4BR | $1,480 | $348,845 | 0.42% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 75766, centered around Jacksonville, TX, reveals a significant financial opportunity for landlords and small-portfolio investors. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the actual market rent based on Census ACS data is $908. This indicates a gap of $62, representing a 6.8% difference favoring the FMR.
The higher FMR compared to the market rent means that voucher tenants can offer a better rental yield. Landlords who accept Section 8 vouchers will receive a subsidy that brings their total rental income closer to the FMR, thus providing a more attractive return on investment than renting to non-voucher tenants at the lower market rate. For instance, if a landlord charges the market rent of $908, they would receive an additional $62 from the government to meet the FMR, effectively increasing the net rental income by the aforementioned percentage.
Jacksonville, TX has a rental population of 29.3%, indicating a sizeable portion of the community relies on rental properties. The median home value stands at $211,222, which is relatively moderate, suggesting a mix of homeownership and rental demand. With a median income of $51,394, many residents might find it challenging to afford homeownership, thereby increasing the reliance on rental units, especially those supported by Section 8 vouchers.
The cost of housing voucher tenants below open-market rates does not apply here since the FMR exceeds the market rent. However, for areas where the FMR is below the market rent, accepting voucher tenants could mean a landlord is renting out property at a lower rate than what the market dictates, potentially leading to reduced cash flow. In such cases, the decision to accept Section 8 vouchers should be weighed against the potential for increased occupancy stability and government reliability in paying subsidies.
In Jacksonville, TX, the higher FMR presents a clear advantage for landlords willing to participate in the Section 8 program. By doing so, they can secure a steady income stream that aligns closely with the projected FMR, benefiting from the subsidy structure without compromising on the quality of tenants. This makes ZIP 75766 a prime location for yield-focused investments in the rental market.
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.