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 | $1,530 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $227,878 | 0.68% | D |
| 2BR | $1,830 | $315,263 | 0.58% | F |
| 3BR | $2,400 | $340,356 | 0.71% | D |
| 4BR | $3,010 | $1,061,800 | 0.28% | F |
| 5BR | $3,492 | $1,742,167 | 0.2% | F |
U.S. Census Bureau data (2024)
The skeptical investor might question whether the Fair Market Rent (FMR) of $1,660 for ZIP 76107 in Fort Worth, TX, will cover the mortgage on a $364,400 home. To address this, we must first consider the current mortgage rates. As of now, rates vary widely depending on the type of mortgage, but let's assume a conservative fixed-rate of 4.5%, which is within the range of recent rates for Fort Worth. On a $364,400 home, a 30-year fixed-rate mortgage at 4.5% would result in a monthly principal and interest payment of approximately $1,800. This means that the FMR of $1,660 would not fully cover the mortgage payment.
Another objection could be the relatively low renter demand at 55.9%. While this percentage does indicate that slightly over half of the housing units are rented, it's important to note that the median housing rent payment in the 76107 ZIP Code is $1,118 per month. This suggests that even though the demand isn't extremely high, the rental market is still active and competitive. However, the rental vacancy rate stands at 9.0%, which is higher than the national average. A higher vacancy rate can pose a risk of having units unoccupied for longer periods, potentially impacting cash flow.
Lastly, the investor might wonder if the Housing Choice Voucher Program will keep pace with the market rents of $1,619. According to recent trends, the number of voucher holders in the area has been stable, but the specific data on whether the voucher amounts are increasing in line with market rents is not readily available. Given the median home value of $431,300, it's likely that the voucher amounts may lag behind market increases, which could affect the ability to attract tenants who rely solely on vouchers.
In summary, while the rental market in ZIP 76107 shows some activity, it is not without risks. The FMR of $1,660 does not fully cover the mortgage on a $364,400 home, the rental vacancy rate is above the national average, and the stability of voucher amounts is uncertain. These factors should be carefully considered when investing in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.