Location: Nacogdoches County, TX | Metro: Rusk County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 75946 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which is crucial for landlords and small-portfolio investors to understand. For fiscal year 2024, the FMR is set at $970, while the Census American Community Survey (ACS) reports the market rent at $908. This indicates that the FMR is $62 higher than the market rent, representing a 6.8% premium.
The gap suggests that voucher tenants can offer a yield play for property owners. Given that the FMR exceeds the market rent, landlords who participate in the Section 8 program can expect to receive higher rental payments compared to what they might get from non-voucher tenants. This is particularly beneficial in an area where only 32.0% of residents are renters, as it means there is a smaller pool of potential tenants competing for rental properties. With a median home value of $228,707 and a median income of $58,177, the financial landscape supports the idea that voucher tenants can provide a steady and slightly above-market income stream.
However, it's important to note that participating in the Section 8 program comes with its own set of responsibilities and costs. Landlords must adhere to HUD standards, which can sometimes necessitate additional maintenance and repairs. Furthermore, the process of renting to voucher holders involves working closely with local housing authorities, which can introduce administrative overhead. Despite these considerations, the premium of $62 per month makes the Section 8 program attractive for landlords in ZIP 75946.
In summary, the Section 8 program in ZIP 75946 presents an opportunity for landlords to secure rental income that is slightly above the current market rate. This can be particularly advantageous given the relatively low percentage of renters in the area and the financial context of the zip code. By participating, landlords can leverage the FMR to their benefit, although they should be prepared for the associated obligations and costs.
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.