Location: Anderson County, TX | Metro: Anderson 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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $137,468 | 0.87% | C |
| 3BR | $1,420 | $217,016 | 0.65% | D |
| 4BR | $1,730 | $299,786 | 0.58% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 75801, which covers Palestine, TX, and Anderson County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,110. This figure represents the maximum amount the federal government will pay towards rent under the Section 8 program for a two-bedroom unit in this specific area.
Local market rents, however, run higher at $1,475, as indicated by ZORI (Zillow Observed Rent Index). This means that landlords participating in the Section 8 program will receive less than the market rent for their properties. To understand the actual payment a landlord receives, we must consider the components of a Section 8 voucher.
A Section 8 voucher covers a significant portion of the rent but not all of it. The tenant is responsible for paying 30% of their adjusted income towards rent. Additionally, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 75801, the total reimbursement to the landlord would be the SAFMR of $1,110 plus any applicable utility allowance.
To illustrate, let's assume a tenant with an adjusted income of $1,000 per month. Thirty percent of their income is $300, which they must pay towards rent. The remaining $810 of the $1,110 SAFMR would come directly from the housing authority. If there is a utility allowance of $150, the total reimbursement to the landlord would be $960 ($810 rent + $150 utilities).
This calculation shows that the landlord would receive $960 from the Section 8 program and $300 from the tenant, totaling $1,260. However, the local market rent is $1,475, leaving a gap of $215 between the market rent and the Section 8 reimbursement.
In summary, landlords in ZIP 75801 can expect a reimbursement of $1,110 plus utility allowances for a two-bedroom unit under the Section 8 program. Given the local market rent of $1,475, there is a typical reimbursement gap of $215 per unit. This gap represents the difference between the market value of the rental property and the amount subsidized by the federal government.
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.