Location: Anderson County, TX | Metro: Anderson County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75861, located in Anderson County, TX metro, reveals critical insights for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, set at $1,040 for fiscal year 2026, is higher than the current market rent of $940 as reported by the Census ACS. This suggests that while landlords can aim for the FMR, they may face resistance from tenants accustomed to lower rents. To maximize occupancy and income, it's advisable to align rental prices closer to the market rate but with an eye on the FMR trend for future adjustments.
Moving on to acquisition affordability, the median home value in ZIP 75861 stands at $322,445. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts indicates a stable housing market. Without these metrics, it's challenging to determine the ease of acquiring properties at fair prices. Landlords should conduct thorough due diligence, including examining recent sales trends and speaking with local real estate agents, to ensure they make financially sound investments.
Regarding tenant demand, the ZIP code has a population of 1,381, with 32.4% of residents being renters. This percentage points to a moderate demand for rental properties, which is crucial for maintaining steady occupancy rates. With a smaller overall population, the number of potential tenants is limited, so competition among landlords could be fierce. Nonetheless, the renter share suggests that there is a viable market for those willing to invest.
Verdict: While the rent math leans towards a need for cautious pricing to avoid tenant pushback, the acquisition cost at $322,445 presents a reasonable entry point. Tenant demand is present, though limited by the small population size. Investors should focus on competitive pricing strategies and consider the long-term potential of the area as rental markets often adjust over time. A strategic approach to property management and marketing will be key to success in this ZIP code.
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.