Location: Nacogdoches County, TX | Metro: Nacogdoches 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 | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,320 | $290,525 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 75965 is situated in a suburban neighborhood characterized by a modest population size of 18,243 residents. With nearly half of the residents, 48.6%, being renters, it indicates a significant demand for rental properties in the area. The median household income stands at $55,291, which reflects a middle-class community. The median home value in the area is $275,685, suggesting that homeownership is accessible but not inexpensive.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,040, while the market rent, as measured by the Zillow Observed Rental Index (ZORI), is slightly higher at $1,098. This difference highlights a potential gap between the subsidized rental rates and the actual market conditions, which could be a point of interest for investors looking to understand the financial dynamics of the rental market in ZIP 75965.
Given these economic factors, ZIP 75965 might suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of a substantial number of renters and the established FMR provide a stable investment environment where the risk of vacancy is lower due to the ongoing demand for affordable housing. On the other hand, for hands-on value-add buyers, there's an opportunity to increase property values and rents above the FMR, leveraging the slightly higher market rent to achieve better returns on investment.
The mix of middle-income residents and a median home value that is neither too high nor too low suggests that the area has a balanced market. Investors should consider the demographic composition and the potential for rental rate adjustments when deciding whether to adopt a passive or active approach to managing their properties in ZIP 75965.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.