Location: Henderson 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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $171,909 | 0.73% | D |
| 3BR | $1,500 | $224,043 | 0.67% | D |
| 4BR | $1,840 | $330,464 | 0.56% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 75803, located in Palestine, TX, and part of the Henderson County, TX metro area, is nearly balanced but leans slightly unfavorable. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,140. However, the actual market rent, according to Census ACS data, is $1,113. This indicates that landlords might struggle to fully cover their costs if they aim to align with the FMR, as the market suggests lower rental rates.
Regarding property acquisition, the median home value stands at $218,140. This figure represents an affordable entry point for landlords and small-portfolio investors, especially considering the low competition indicated by the N/A-day Days on Market (DOM) statistic and the minimal 0.2% share of homes that have been subject to price cuts. These factors suggest that properties can be acquired at stable prices without excessive negotiation.
Tenant demand in ZIP 75803 is moderate. With a total population of 21,770, approximately 24.6% are renters. This implies a steady pool of potential tenants, although it's important to note that the relatively low renter share could pose challenges during periods of high vacancies.
In summary, while the rent math is close, it does not fully support the FMR, making it slightly challenging for landlords to maintain profitability. Property acquisition is affordable and straightforward, with stable prices and little need for negotiation. Tenant demand is present but not overwhelming, which means landlords must manage their properties efficiently to ensure consistent occupancy. Despite these considerations, ZIP 75803 offers a viable investment opportunity for those willing to navigate the slight discrepancies between FMR and market rents.
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.