Location: Fort Worth-Arlington, TX | Metro: Fort Worth-Arlington, TX HUD Metro FMR Area
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 | $1,420 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $221,266 | 0.77% | D |
| 3BR | $2,230 | $293,004 | 0.76% | D |
| 4BR | $2,790 | $370,104 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 76086 in Weatherford, TX, reveals some key insights into the investment potential for landlords and small-portfolio investors. To start, the Fair Market Rent (FMR) for a 2-bedroom apartment in FY 2024 is set at $1,550 annually, while the market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,490 per month.
Given the median home value of $272,895 in this area, let's calculate the implied gross yield for both the Section 8 scenario and the market rent scenario. For the Section 8 scenario, using the annualized FMR of $1,550, the gross yield would be approximately 5.7%. This calculation is derived from dividing the annual rent ($1,550) by the median home value ($272,895).
In contrast, if we consider the market rent of $1,490 per month, the annual rent would be $17,880, leading to an implied gross yield of around 6.5%. This figure is obtained by dividing the annual market rent ($17,880) by the median home value ($272,895).
Evaluating these two scenarios, the market rent yields a higher gross return compared to the Section 8 rent. However, the decision between the two should also take into account the local rental market dynamics. With a renter density of 47.5%, there is a significant portion of the population looking for rental properties, which suggests a robust demand for rentals in the area.
The Days on Market (DOM) of 47 days indicates that rental properties are typically occupied relatively quickly once they become available. This factor supports the viability of achieving market rents in this ZIP code, as it shows a strong appetite for rentals among the local population.
Considering these factors, the market rent scenario appears more realistic for landlords and small-portfolio investors seeking to maximize their gross yield. The slightly lower gross yield under the Section 8 scenario does not fully leverage the favorable rental market conditions present in ZIP 76086. However, the choice ultimately depends on the investor's risk tolerance and the specific requirements of their investment strategy.
To summarize, the gross yield for a 2BR property under Section 8 in ZIP 76086 is about 5.7%, while the market rent scenario offers a gross yield of approximately 6.5%. Given the local rental market conditions, the market rent scenario is likely to be more profitable and practical for most investors.
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.