Section 8 Fair Market Rent (FMR) for ZIP 75778 - 2027

Investment Score for ZIP 75778

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if you should buy in ZIP code 75778 for Section 8 investment, follow this decision tree:

1) Does FMR ($1,110 - metro FY 2026) clear debt service on a $242,118 property?

• Yes: The Fair Market Rent (FMR) of $1,110 can cover the debt service on a property valued at $242,118. This means that the rental income is sufficient to meet the mortgage payments and other financial obligations associated with owning the property.
• No: If the FMR does not clear the debt service, then purchasing a property in this ZIP code would not be financially viable under Section 8 guidelines. You need to ensure that the rent can cover the costs of ownership.

2) Is market rent ($1,142 - Census ACS) above, at, or below FMR?

• Above: If the market rent of $1,142 exceeds the FMR of $1,110, it indicates a strong local rental market. Landlords can potentially charge higher rents to non-Section 8 tenants, which can improve overall profitability.
• At: When market rent matches the FMR exactly, there is little room for maneuvering in terms of pricing. It suggests a balanced market where Section 8 rents align closely with what the market can bear.
• Below: If the market rent falls below the FMR, it could signal a soft rental market or misalignment between the FMR and actual market conditions. This scenario might present risks in terms of attracting non-Section 8 tenants willing to pay the lower FMR rates.

3) Are 23.7% renters + N/A-day days on market (DOM) enough demand?

• It Depends: With 23.7% of residents being renters, there is a moderate level of rental demand. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are leased. A low DOM indicates high demand and quick leasing, while a high DOM suggests slower turnover and potentially less interest from tenants.

Based on the given information, the viability of purchasing a property in ZIP 75778 for Section 8 investment hinges on the answers to these questions. If the FMR clears the debt service and market rent is either at or above the FMR, the investment becomes more attractive. The percentage of renters provides a snapshot of potential demand, but without DOM data, the speed of leasing cannot be fully assessed.

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.