Location: Cherokee County, TX | Metro: Rusk County, TX HUD Metro FMR Area
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 | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $202,634 | 0.6% | F |
| 3BR | $1,620 | $342,475 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 75789 in Troup, TX reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1180, while the Census ACS reports the market rent at $971. This creates a difference of $209 per month, or approximately 21.5%, which is a crucial figure for landlords and small-portfolio investors.
Given that the FMR exceeds the market rent, properties in ZIP 75789 are positioned as strong yield plays for those willing to accept Section 8 housing vouchers. The higher FMR means that landlords can charge closer to $1180 per month for voucher tenants, thereby increasing their rental income above the typical market rate of $971. This makes it particularly attractive for investment, especially considering the relatively low percentage of renters in the area—only 15.3%. The median home value in Troup, TX is $273,580, and the median household income is $83,131, indicating that there is a balance between property values and income levels that supports the viability of Section 8 rentals.
The cost of housing voucher tenants below open-market rates is minimal in this scenario. Since the FMR is set above the current market rent, landlords do not face the risk of losing money by accepting voucher tenants. In fact, they stand to gain an additional $209 per unit each month compared to renting out units at the typical market rate. This makes Section 8 properties a financially sound choice for landlords in Troup, TX, as it allows them to capitalize on government subsidies without the usual risks associated with lower-income housing.
However, it's important to note that while the financials appear favorable, the decision to accept Section 8 tenants should also consider other factors such as the potential for longer-term leases and the benefits of a stable tenant base. The higher FMR ensures that landlords are compensated at a rate that reflects the true cost of maintaining quality rental properties, making it a strategic move in the current rental market conditions of Troup, TX.
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.