Location: Somervell County, TX | Metro: Somervell County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 76077 centers around the disparity between the Fair Market Rent (FMR) and the actual market rents. For fiscal year 2026, the FMR is set at $1,250. However, the current market rent is not available, which makes it challenging to provide a precise percentage gap. Despite this lack of data, we can still infer that if the market rent were higher than the FMR, landlords would be subsidizing the difference when renting to voucher tenants. This subsidy translates into a lower net rental income per unit compared to what could be earned renting at market rates.
In the context of ZIP 76077, where only 4.0% of residents are renters and the median household income stands at $118,705, the decision to accept Section 8 vouchers must be carefully weighed against the potential financial impact. The absence of a median home value figure suggests that homeownership may be less prevalent or less tracked in this area, but the high median income indicates a strong economic base among homeowners.
If the market rent were indeed higher than the FMR, accepting Section 8 tenants would mean setting your rental rates below what the market dictates. This strategy can be a yield play for landlords who prioritize occupancy over higher rents. With such a low percentage of renters, maintaining a steady stream of income through guaranteed voucher payments can be a safer bet than risking vacancy in a competitive market. However, this comes at the cost of foregoing the higher rents that might be achievable in an open-market scenario.
To make informed decisions, landlords and small-portfolio investors should consider the long-term benefits of consistent cash flow versus the short-term gains from potentially higher market rents. Additionally, they should factor in the administrative ease and security of having government-backed tenants, even if it means a smaller profit margin per unit. The economic landscape of ZIP 76077, characterized by its high median income, supports the idea that there may be fewer low-income individuals seeking rental properties, thus making the choice to rent below market rates a significant consideration.
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.