Location: Walker County, TX | Metro: Houston County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75851 in Walker County, TX, reveals several key points for potential landlords and small-portfolio investors.
The first question is whether the rent math works. The Fair Market Rent (FMR) for the area in fiscal year 2026 is set at $1,080. However, the current market rent, according to the Census ACS, stands at $900. This indicates that while the FMR suggests higher rent potential, the actual market rent is lower, which could affect profitability if rents are not increased accordingly.
Secondly, is acquisition affordable? The median home value in ZIP 75851 is $283,106. With no data available on days on market (DOM) or the percentage of homes needing price cuts, it's challenging to assess the exact affordability of acquiring properties. However, the median home value is relatively low, suggesting that property acquisition might be within reach for many investors. The lack of data on DOM and price-cut shares means that the market is either stable or has limited recent sales activity, which could imply less competition among buyers.
Finally, is there tenant demand? The population of ZIP 75851 is 4,336, with a 10.2% renter share. Given the small population size, the number of potential tenants is also limited. At 10.2%, the renter share is below average, indicating a smaller pool of renters compared to other areas. This could mean that finding and retaining tenants may be more challenging.
In summary, while the median home value makes acquisition potentially affordable, the discrepancy between FMR and market rent suggests that landlords must carefully manage their costs and expectations. The limited tenant demand due to the small population and below-average renter share adds another layer of challenge. Investors should proceed with caution, focusing on cost management and possibly targeting niche markets to ensure occupancy rates.
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.