Location: Navarro County, TX | Metro: Freestone 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 | $1,170 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $467,662 | 0.46% | F |
| 4BR | $2,200 | $808,925 | 0.27% | F |
U.S. Census Bureau data (2024)
In ZIP code 75859, the Section 8 program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Section 8 Area FMR) for a two-bedroom apartment in this ZIP code is set at $1,490 per month for fiscal year 2026. This figure represents the maximum amount the housing authority will pay towards a tenant's rent if they qualify for a voucher.
The local market rent for a two-bedroom unit in ZIP 75859 is slightly higher at $1,554 per month, based on recent Census ACS data. This indicates that landlords may face a minor challenge in terms of rent collection since the voucher amount does not fully cover the market rate.
When a tenant uses a Section 8 voucher, they are typically responsible for paying 30% of their adjusted monthly income towards rent. For simplicity, let's assume a tenant's adjusted monthly income is $1,000, which would mean they would contribute $300 towards the rent. The housing authority would then cover the remaining portion up to the SAFMR limit of $1,490. However, the total reimbursement to the landlord also includes an allowance for utilities, which can vary but is often around $100-$150 per month.
To illustrate, if the tenant contributes $300 and receives a utility allowance of $150, the housing authority would reimburse the landlord $1,440 ($1,490 - $300 + $150) for a two-bedroom apartment. This brings the total reimbursement to $1,590, which is above the market rent of $1,554. Therefore, in ZIP 75859, landlords participating in the Section 8 program for a two-bedroom unit can expect a surplus of approximately $36 per month, assuming the utility allowance is $150 and the tenant's contribution is $300.
This surplus provides landlords with a buffer against potential maintenance costs and vacancies, making participation in the Section 8 program financially viable. It's important to note that the SAFMR applies specifically to this ZIP code, meaning it is tailored to the local rental market conditions and does not apply uniformly across the broader metro or county area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.