Section 8 Fair Market Rent (FMR) for ZIP 76131 - 2027

Investment Score for ZIP 76131

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	$1,800
1 Bedroom	$1,820
2 Bedrooms	$2,150
3 Bedrooms	$2,810
4 Bedrooms	$3,530
5 Bedrooms	$4,095
6 Bedrooms	$4,586
7 Bedrooms	$4,953
8 Bedrooms	$5,201

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	$2,150	$215,643	1%	C
3BR	$2,810	$294,757	0.95%	C
4BR	$3,530	$350,980	1.01%	B
5BR	$4,095	$402,219	1.02%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76131 (Saginaw, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76131 in Saginaw, TX, is set by HUD for 2026. For a two-bedroom unit, the FMR is $2150, which represents 23.7% of the median household income of $108,694. This indicates that the FMR is relatively affordable compared to the local income levels. However, it is important to compare these figures with actual rental rates to understand the dynamics for voucher holders. According to the data, the Zillow median price for a two-bedroom home is $219,737, which is significantly higher than the FMR. The price-to-FMR ratio is 8.5x, suggesting that the actual rental market is much pricier than the FMR. This means that voucher holders might face challenges finding units that accept their vouchers, especially if landlords prefer higher-paying tenants who can afford the actual market rates. #### Affordability & Renter Profile In ZIP code 76131, 26.7% of the population are renters, indicating a substantial demand for rental properties. With a median household income of $108,694, most residents have the financial capacity to afford higher rent prices, but this also implies that those relying on Section 8 vouchers might struggle to find suitable housing. The occupancy rate of 98.6% suggests a very tight rental market, where almost all available units are occupied. This high occupancy rate could make it difficult for voucher holders to secure housing, as landlords may be less inclined to accept vouchers when there is a ready pool of higher-paying tenants. #### Investor Angle From an investor perspective, the FMRs provide a benchmark for rental pricing. For a two-bedroom unit, the FMR is $2150, which is considerably lower than the actual market rent. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with property ownership, such as mortgage payments, maintenance, and utilities. Given the Zillow median price of $219,737 for a two-bedroom home, let’s assume a conservative mortgage payment of $1000 per month (based on a 30-year fixed-rate mortgage at 5%). Adding typical maintenance costs of $100-$200 per month and utilities of around $150, the total monthly expense would be approximately $1250-$1350. At the FMR of $2150, the net cash flow would be between $800-$900 per month, indicating a positive cash flow scenario. However, the investment grade for this ZIP code would depend on the willingness of landlords to accept Section 8 vouchers. Given the tight rental market and the high price-to-FMR ratio, landlords might be hesitant to accept vouchers, preferring to rent at market rates instead. Therefore, while the FMR provides a positive cash flow, the challenge lies in attracting tenants who can pay the FMR. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Investors should focus on acquiring properties that are priced closer to the FMR. For instance, a two-bedroom unit priced at $2150 would be more likely to attract Section 8 voucher holders. This strategy would ensure better occupancy rates and steady cash flow. 2. **Consider Smaller Units**: One-bedroom units have an FMR of $1840, which is still below the median income level. These units might be easier to rent out using Section 8 vouchers, given the tight market conditions and the high occupancy rate. Investors could consider developing or purchasing smaller units to cater to this segment. 3. **Engage with Local Agencies**: To improve the likelihood of renting to Section 8 voucher holders, investors should engage with local housing authorities and tenant placement agencies. Building relationships with these organizations can help streamline the process and increase the chances of securing tenants who use vouchers. #### Bottom Line For Section 8-focused investors, ZIP code 76131 presents a mixed picture. While the FMR offers a positive cash flow scenario, the tight rental market and high price-to-FMR ratio suggest that landlords might prefer market-rate tenants. Therefore, the recommendation for this ZIP code is to **Hold**. Investors should maintain existing Section 8 properties and consider engaging with local agencies to improve the chances of securing voucher holders. However, new acquisitions should be approached cautiously, focusing on units that are priced closer to the FMR to ensure better occupancy and cash flow.

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.