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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $160,803 | 0.68% | D |
| 3BR | $1,390 | $220,519 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75785, located in Cherokee County, TX metro, reveals several key points regarding its viability for Section 8 real-estate investments.
First, let's address whether the rent math works. The Fair Market Rent (FMR) for the TX metro area in fiscal year 2026 is set at $970. In comparison, the current market rent as per Census ACS data stands at $955. This indicates that landlords can expect to receive slightly above market rates through Section 8, making the rent math favorable.
Second, we must consider if property acquisition is affordable. The median home value in ZIP 75785 is $207,265. While this figure is relatively low, the lack of data on days on market (DOM) and the fact that only 0.2% of listings require a price cut suggest that properties are selling quickly without significant discounts. This implies that while the median home value is affordable, competition for properties might be high.
Third, the presence of tenant demand is crucial for any rental investment. With a total population of 10,705, 22.5% of which are renters, there is a moderate base of potential tenants. However, the relatively small population size could limit the number of eligible Section 8 applicants.
In summary, ZIP 75785 offers a favorable rent math scenario where Section 8 rates exceed current market rents. Property acquisition appears affordable but competitive, given the quick sales and minimal price cuts. Tenant demand is present but limited by the small population size. For landlords and small-portfolio investors, this ZIP code presents an opportunity, especially if they can secure properties before the competition intensifies. However, they should be prepared for a potentially smaller pool of eligible tenants compared to larger metropolitan areas.
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.