Location: Trinity County, TX | Metro: Trinity County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 75845 provides a clear picture of potential rental income scenarios. Using the Fair Market Rent (FMR) for a two-bedroom apartment set at $1,080 per month for fiscal year 2026, we can annualize this figure to $12,960. This represents the maximum allowable rent that a landlord could charge under the Section 8 program. When compared to the median home value of $207,977 in the area, this translates into an implied gross yield of approximately 6.2%. This calculation is derived from dividing the annualized FMR by the median home value.
In contrast, the market rent for a two-bedroom apartment is listed at $663 per month according to the Census ACS data, which annualizes to $7,956. This lower figure yields a gross rental income of roughly 3.8% when calculated against the median home value. The difference between the Section 8 FMR and the market rent highlights the disparity in income potential between government-subsidized tenants and market-rate renters.
The 11.8% renter density in ZIP 75845 suggests that a significant portion of the housing market is occupied by homeowners rather than renters. This low renter density makes it less likely that landlords will be able to consistently fill properties with market-rate tenants, especially if those tenants are seeking to avoid higher rents. Therefore, the Section 8 FMR scenario, with its guaranteed rent payment up to $1,080 per month, appears more realistic for maintaining steady cash flow.
However, the lack of Days on Market (DOM) data complicates the assessment of how quickly a property might be rented under either scenario. Despite this, the higher gross yield of 6.2% associated with the Section 8 FMR aligns better with the financial needs of landlords and small-portfolio investors in ZIP 75845. It ensures a more reliable income stream compared to the market rent scenario, which offers a lower gross yield of 3.8%.
In conclusion, while both the Section 8 FMR and market rent provide insight into the rental income potential of properties in ZIP 75845, the higher gross yield from the FMR is more practical for landlords aiming to achieve stable returns on investment. The 6.2% gross yield, based on the $1,080 monthly rent, is significantly more attractive than the 3.8% yield from the $663 market rent, especially considering the limited pool of market-rate renters in the area.
Data Sources: FMR data from HUD (2027). 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.