Location: Anderson County, TX | Metro: Anderson County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 75779 reveals some critical insights into potential investment opportunities. To begin, the Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,120 per month. This figure annualizes to $13,440, providing a baseline for rental income under the Section 8 program.
Given that the median home value in ZIP 75779 is not available, we must rely on other metrics to derive a cap-rate estimate. The implied gross yield from the annualized FMR can be calculated by dividing the annual rental income by the property value. However, without the median home value, this calculation remains incomplete.
In the case where market rent data is also not available, it's crucial to understand the implications for investors. The lack of market rent data suggests that there may not be sufficient information to compare the Section 8 rental rates against what could be earned from market-rate tenants. This absence of data can affect the perceived attractiveness of Section 8 properties in this area.
Despite these limitations, the zero percent renter density indicates that there is currently no significant presence of renters in ZIP 75779, which might suggest a preference for homeownership over renting. This factor should be considered when evaluating the potential demand for rental properties, particularly those participating in the Section 8 program.
The Days on Market (DOM) being listed as N/A further complicates the analysis. Typically, DOM provides insight into how quickly properties are rented out, affecting cash flow and vacancy rates. Without this information, investors cannot accurately predict the speed at which they might expect to fill vacancies or the associated costs.
Comparing the implied gross yield from the annualized FMR to what might be derived from market rents, if they were available, would provide a clearer picture of the investment potential. However, the current data gap means that such a comparison is not feasible. Investors should proceed with caution and seek additional local market intelligence before making investment decisions in ZIP 75779.
To summarize, the annualized FMR of $13,440 offers a starting point for calculating the gross yield, but the lack of median home values and market rents, combined with the low renter density and unknown DOM, presents significant challenges in fully assessing the cap-rate for Section 8 properties in ZIP 75779. These factors suggest that while the FMR provides a stable income source, the broader market conditions may limit the overall profitability compared to market-rate rentals.
Data Sources: FMR data from HUD (2027). 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.