Location: Shelby County, TX | Metro: San Augustine County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 75935, located in Shelby County, TX metro, reveals several key points that can influence investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $1,050 for fiscal year 2026, which is significantly higher than the market rent of $786 as reported by the Census ACS. This means that voucher tenants will generally cashflow positively at the HUD FMR rate, providing a strong financial benefit to landlords.
To further understand the rental market, we can look at the rent-to-price ratio derived from the median home value of $202,354. Given the market rent of $786, the annual rent would be approximately $9,432, leading to a rent-to-price ratio of about 4.65%. This suggests that the rental income generated from properties in this area is relatively low compared to the property values, indicating that the primary appeal for investors might be the steady cash flow provided by Section 8 vouchers rather than the potential for high rental yields.
The median Days on Market (DOM) is N/A, and the price-cut share is 0.1%, both of which suggest that the housing market in ZIP 75935 is stable and not prone to significant fluctuations. This stability can be beneficial for long-term investors looking for consistent returns rather than short-term gains. The low price-cut share also indicates that homes are selling close to their asking price, suggesting that the local real estate market is robust and that property values are likely to remain steady or appreciate gradually over time.
In conclusion, the strongest investor angle in ZIP 75935 is the cashflow provided by the difference between the HUD FMR and the actual market rent. This positive cashflow can help offset any maintenance costs and provide a reliable source of income for landlords and small-portfolio investors.
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.