Location: San Augustine County, TX | Metro: San Augustine County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
A decision to invest in ZIP code 75929 for Section 8 properties hinges on three key factors. Here’s how to evaluate each:
1. Does FMR $1,160 (metro FY 2026) clear debt service on a $216,084 property?
If your answer is yes, proceed to the next question. At $1,160 per month, the Fair Market Rent (FMR) can cover the debt service for a property priced at $216,084. This means that the rental income is sufficient to meet mortgage payments and other financial obligations.
If your answer is no, consider other areas. The FMR does not provide enough income to clear the debt service on a property valued at $216,084, making it an unprofitable investment for Section 8 purposes.
2. Is market rent $546 (Census ACS) above, at, or below FMR?
If the market rent is below the FMR, you still have a competitive advantage with Section 8 tenants. The FMR sets the maximum allowable rent for Section 8 vouchers, so landlords can charge closer to $1,160 rather than the lower market rate of $546.
If the market rent is at or near the FMR, it indicates a saturated market. Rents are already high relative to the FMR, and there might be little room for profit above the FMR without losing tenants.
If the market rent is above the FMR, this scenario is unlikely given the provided data. In such a case, you would need to re-evaluate the market conditions as they may not align with the Census data.
3. Are 13.8% renters + N/A-day days on market (DOM) enough demand?
If the percentage of renters is sufficient and the DOM is low or average, indicating quick property turnover, the demand is likely strong. With 13.8% of the population renting, there is a notable portion of potential Section 8 tenants. However, the lack of specific DOM data makes this assessment challenging.
If the percentage of renters is low and DOM is high, indicating slow property turnover, the demand is weak. A 13.8% rental rate could be insufficient if the DOM is long, suggesting that finding tenants may be difficult.
The final decision will depend on the answers to these questions. If FMR clears debt service, market rent is below FMR, and there is a reasonable level of demand, then the answer is yes. If any of these conditions are not met, then the answer is no or it depends on further investigation into local market dynamics and property specifics.
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.