Section 8 Fair Market Rent (FMR) for ZIP 76123 - 2027

Investment Score for ZIP 76123

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	$2,140
1 Bedroom	$2,170
2 Bedrooms	$2,560
3 Bedrooms	$3,350
4 Bedrooms	$4,210
5 Bedrooms	$4,884
6 Bedrooms	$5,470
7 Bedrooms	$5,908
8 Bedrooms	$6,203

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	$2,560	$228,522	1.12%	B
3BR	$3,350	$265,871	1.26%	A
4BR	$4,210	$311,659	1.35%	A
5BR	$4,884	$389,765	1.25%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76123 (Fort Worth, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 76123 are set by HUD for the year 2026 and provide insight into the rental market dynamics for Section 8 voucher holders. The FMRs for various bedroom sizes are as follows: - 0BR: $2140 - 1BR: $2210 - 2BR: $2580 (which is 30.1% of the median household income) - 3BR: $3400 - 4BR: $4220 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it's important to note that the actual rents in the area might be higher. For instance, the Zillow median price for a 2BR home is $218,279, which translates to a monthly mortgage payment well above the FMR if financed at typical rates. This suggests that the actual rental market could be significantly higher than the FMRs. Given the occupancy rate of 95.4%, it indicates a strong demand for housing, which could push actual rents above the FMR levels. Consequently, voucher holders face constraints in finding suitable housing within their budget. They may need to look outside the ZIP code or consider lower-quality units to stay within the FMR limits. #### Affordability & Renter Profile ZIP code 76123 has a population of 42,957, with 23.3% of residents being renters. The median household income is $102,768, which is relatively high compared to national averages. The affordability of housing for renters is a critical issue given the high median home price and the fact that the FMR for a 2BR unit is only 30.1% of the median income. This means that even though the median income is high, the cost of housing is still a significant burden for many renters. The market appears to be quite tight, with a high occupancy rate indicating limited availability of rental units. This tightness could exacerbate the challenges faced by voucher holders who need to find affordable housing options. Given the high median home price and the low percentage of median income allocated to FMR, it is likely that the market is undersupplied with affordable units, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 76123 presents a mixed picture. The price-to-FMR ratio of 7.1x for a 2BR unit suggests that the cost of acquiring a property is significantly higher than the potential rental income it can generate under Section 8 guidelines. Specifically, a 2BR unit priced at $218,279 would have a monthly mortgage payment of approximately $1,000 to $1,200, depending on interest rates and loan terms. This leaves little room for profit when the maximum allowable rent is $2580. Moreover, the high median home price and the tight rental market suggest that there may be limited opportunities for investors to acquire properties at reasonable prices. The investment grade for this ZIP code would likely be rated as low due to the high acquisition costs and the limited number of units that can be rented out at FMR rates. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring 0BR and 1BR units, which have lower FMRs ($2140 and $2210 respectively). These units are more likely to be rented out by voucher holders, providing a steady stream of income despite the high acquisition costs. 2. **Consider Outlying Areas**: Given the high price-to-FMR ratio, investors might want to look at adjacent ZIP codes with similar characteristics but potentially lower acquisition costs. This could help in achieving better cash flow while still serving the needs of Section 8 voucher holders. 3. **Utilize Property Management Services**: Due to the tight market and the challenges of finding affordable units, utilizing professional property management services can help ensure that the units are properly marketed and managed to attract eligible tenants. This can also help in navigating the complexities of Section 8 regulations. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 76123 is to **skip** this market. The high acquisition costs and the limited number of units that can be rented out at FMR rates make it challenging to achieve positive cash flow. Additionally, the tight rental market and high median home prices indicate that this ZIP code is not an optimal location for such investments. Investors should consider other areas with lower price-to-FMR ratios and more favorable conditions for Section 8 properties.

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.