Location: Cherokee County, TX | Metro: Cherokee 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $243,977 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75925 in Cherokee County, TX, reveals key insights for landlords and small-portfolio investors. First, let's address whether the rent math works. The Fair Market Rent (FMR) for the area, set at $970 for fiscal year 2026, is significantly higher than the current market rent of $742, according to Census ACS data. This suggests that landlords can expect to charge rents below the FMR threshold, which could be advantageous for attracting tenants.
Second, regarding the affordability of acquisition, the median home value in ZIP 75925 stands at $220,796. Given the lack of data on days on market (DOM) and the percentage of homes with price cuts, it's challenging to determine how competitive the market is for acquiring properties. However, the median home value is relatively low, indicating that purchasing a property in this area would likely be more affordable compared to other parts of the country.
Lastly, there is a notable tenant demand in ZIP 75925. With a population of 3,657 and a 30.4% renter share, approximately 1,111 residents are actively seeking rental housing. This demand provides a solid foundation for rental income, especially considering the discrepancy between the FMR and market rent.
Verdict: The rent math in ZIP 75925 is favorable for landlords, with the potential to charge below the FMR while still being competitive in the local market. Acquisition appears affordable with a median home value of $220,796, though the absence of DOM and price-cut data limits a full assessment. Tenant demand is present, supporting the viability of rental investments. Landlords and investors should proceed with confidence, leveraging the lower market rents to attract tenants and capitalize on the area's affordability.
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.