Section 8 Fair Market Rent (FMR) for ZIP 76116 - 2027

Investment Score for ZIP 76116

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,260
1 Bedroom	$1,270
2 Bedrooms	$1,500
3 Bedrooms	$1,960
4 Bedrooms	$2,460
5 Bedrooms	$2,854
6 Bedrooms	$3,196
7 Bedrooms	$3,452
8 Bedrooms	$3,625

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,500	$197,088	0.76%	D
3BR	$1,960	$282,947	0.69%	D
4BR	$2,460	$482,110	0.51%	F
5BR	$2,854	$619,280	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76116 (Fort Worth, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76116 is set by HUD for 2026 and ranges from $1260 for a 0-bedroom unit to $2480 for a 4-bedroom unit. However, the actual rents in the area are significantly higher, especially when considering the Zillow median price for a 2-bedroom home at $196,668. This translates into a price-to-FMR ratio of 10.8x, indicating that the actual rental prices far exceed the FMR guidelines. For instance, a 2-bedroom unit priced at $196,668 would have a monthly mortgage payment of approximately $1,000, assuming a 4.5% interest rate and a 30-year fixed mortgage, which is already close to the FMR of $1520. Given this disparity, Section 8 voucher holders face significant constraints. The maximum rent allowed under the voucher program is capped at the FMR, meaning that voucher holders can only afford units that are priced below these levels. In a market where rents are substantially higher, finding suitable housing becomes challenging. For example, a 2-bedroom unit priced at the Zillow median would be well above the FMR limit, making it inaccessible to those relying on vouchers. #### Affordability & Renter Profile ZIP code 76116 has a population of 49,856, with 63.3% of residents being renters. This high percentage of renters suggests a strong demand for rental properties in the area. The occupancy rate stands at 86.9%, indicating that there is a relatively tight market with limited vacancies. Given that 32.5% of the median household income ($56,187) is allocated towards a 2-bedroom unit’s FMR ($1520), the affordability of housing is a critical issue for many residents. The median household income of $56,187 is relatively low compared to the overall cost of living in Fort Worth, which further exacerbates the affordability challenge. With such a high proportion of renters and limited supply, the competition for affordable housing is intense. This dynamic makes it difficult for lower-income individuals to secure housing without assistance, highlighting the importance of programs like Section 8. #### Investor Angle From an investor perspective, the ZIP code 76116 presents a mixed picture. While the actual rental prices are high, the FMR guidelines are much lower. An investor looking to capitalize on Section 8 vouchers would need to ensure that their rental units are priced within the FMR limits to attract voucher holders. For a 2-bedroom unit, the FMR is $1520, while the Zillow median price suggests a monthly mortgage payment of around $1,000. Assuming additional costs such as property taxes, insurance, and maintenance, the total monthly expenses could range from $1,200 to $1,500. Therefore, the cash flow for an investor renting out a 2-bedroom unit at the FMR would be minimal, if not negative. The investment grade in this ZIP code is likely to be low due to the high actual rental prices and the limited purchasing power of voucher holders. Investors who are not willing to accept lower rents may find it challenging to compete in this market, given the high demand for affordable housing. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rental prices, investors should consider focusing on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1260 and $1300 respectively, which are closer to the actual rental prices in the area. Smaller units may also be more attractive to voucher holders due to their lower rent requirements. 2. **Location-Specific Pricing**: Investors should conduct thorough research on specific locations within ZIP code 76116 to identify areas where rents are closer to the FMR. This could involve targeting neighborhoods with a higher concentration of lower-income residents, where the actual rents might be more aligned with the FMR guidelines. 3. **Rent Stabilization Policies**: Given the tight market and high rent-to-income ratios, investors should be aware of any local rent stabilization policies or regulations that might impact their ability to raise rents. Engaging with local real estate associations or city officials can provide valuable insights into these policies. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 76116 is to **Skip**. The high actual rental prices relative to the FMR guidelines make it challenging to achieve positive cash flow while remaining competitive in the market. Additionally, the high demand for affordable housing and the limited supply suggest that the market is already saturated with properties that are priced beyond what voucher holders can afford. Investors looking to enter this market should consider other ZIP codes with more favorable FMR-to-rent ratios or explore alternative investment strategies that do not rely solely on Section 8 vouchers.

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.