Location: Houston County, TX | Metro: Houston 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 | $800 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $151,950 | 0.69% | D |
| 3BR | $1,310 | $209,613 | 0.62% | D |
| 4BR | $1,380 | $294,058 | 0.47% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) of $990 for the metro area in fiscal year 2026 might not sufficiently cover the mortgage payments on a $182,594 home. According to recent mortgage rates in Crockett, TX, the average 30-year fixed-rate mortgage stands around 4.5%. This translates to a monthly mortgage payment of approximately $915, based on the principal and interest alone. While the FMR is close to covering these costs, it's important to factor in additional expenses such as property taxes, insurance, and maintenance, which could make the difference between profitability and loss.
Investors may question if the 34.7% rental demand is adequate. However, given that the average age in ZIP 75835 is 45.2 years, indicating a larger proportion of homeowners, this figure aligns with expectations. The high median age suggests a stable community with a significant portion of long-term residents, which can translate into steady rental demand for those seeking to rent rather than buy. Moreover, the presence of a large senior population can be seen as a positive factor, as they often prefer rental properties due to lower maintenance responsibilities.
The skepticism about whether housing vouchers will keep pace with the market rent of $869 is valid. Unfortunately, the data provided does not give specific information regarding the voucher utilization rate or its growth trend in ZIP 75835. However, it's crucial to note that voucher programs are designed to help low-income families afford housing, and the federal government periodically adjusts voucher amounts to reflect changes in the cost of living and housing prices. Therefore, while there's no guarantee that vouchers will always match market rents, they provide a consistent source of income for landlords willing to participate in the program.
To summarize, while the FMR may not fully cover all mortgage-related expenses, the rental demand appears stable given the demographic makeup of the area. Vouchers offer a reliable income stream, though their adequacy relative to market rents remains uncertain without specific data. Investors should conduct further research and consider diversifying their portfolios to mitigate risks associated with any single investment.
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.