Location: Tyler, TX | Metro: Tyler, TX MSA
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 | $1,170 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,110 | $270,915 | 0.78% | D |
| 4BR | $2,280 | $351,371 | 0.65% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 75791 might raise several concerns regarding the viability of investing in Section 8 properties. Addressing these requires a close look at the financial metrics available for the area.
Firstly, will the Fair Market Rent (FMR) of $1,420 for the fiscal year 2024 cover the mortgage on a $285,202 home? To evaluate this, consider that the average interest rate for a 30-year fixed mortgage is around 5%. On a $285,202 home, this would result in a monthly mortgage payment of approximately $1,500. The FMR of $1,420 falls short of covering this amount, indicating that additional income sources or lower financing costs would be necessary to make the investment viable.
Secondly, is there sufficient renter demand at 25.8%? The percentage of renters in ZIP 75791 is 25.8%, which is relatively low compared to national averages. However, this figure alone does not provide a complete picture of the rental market's health. It is important to also consider the vacancy rates and the number of rental units available. A low percentage of renters could mean a strong homeownership culture, but it also implies a smaller pool of potential tenants. To truly assess demand, one would need to analyze local employment trends and the growth of the population that might be renting due to financial constraints or lifestyle choices.
Lastly, will vouchers keep pace with market rents of $1,469? The Housing Choice Voucher Program, commonly known as Section 8, aims to subsidize rent for eligible low-income families. In ZIP 75791, the market rent stands at $1,469. While the program adjusts voucher amounts periodically based on cost-of-living changes, there is no guarantee that these adjustments will always match the exact market rents. Investors should prepare for the possibility that some portion of the rent might need to be covered out-of-pocket or seek properties with rents closer to the voucher limits to ensure full coverage.
In conclusion, while ZIP 75791 presents certain challenges for Section 8 investors, such as the FMR falling short of covering mortgage payments on a median-priced home, the limited renter demand, and the uncertainty of voucher amounts keeping up with market rents, these factors can be mitigated through careful property selection and understanding of local economic conditions. Additional research into local vacancy rates and tenant stability would provide further clarity on the investment potential.
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.