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 | $1,880 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,950 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $225,686 | 1% | C |
| 3BR | $2,950 | $267,264 | 1.1% | B |
| 4BR | $3,700 | $315,025 | 1.17% | B |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 76148 (Watauga, TX) for Section 8 investment, follow these steps:
If the annual debt service is less than $24,960 ($2,080 x 12), then the answer is yes. Otherwise, no. For example, if the mortgage payment is $1,500 per month, the total annual debt service would be $18,000, which is below the FMR threshold. This means that FMR can indeed cover the debt service.
The ZORI is slightly below the FMR. This indicates that market rents are lower than the FMR, making it a neutral situation. Landlords should consider other factors before deciding to invest.
Rental demand is considered adequate when there's a balance between the number of potential renters and the time it takes to rent out a property. In Watauga, TX, the DOM is relatively low, suggesting strong demand. However, the percentage of renters is modest at 18.6%. This means that while properties rent quickly, the overall rental market isn't highly saturated.
Decision Outcome:
If the debt service is covered by the FMR and the market rent is close to or exceeds the FMR, then the answer is yes. In Watauga, TX, since the ZORI is just under the FMR, it depends on how much below the FMR the market rent is. If the difference is minimal, the investment is still viable due to the quick turnover indicated by the 35-day DOM. However, if the difference is significant, the investment might not be as profitable.
In conclusion, the decision to invest in ZIP 76148 for Section 8 properties hinges on the ability of FMR to cover debt service and the closeness of market rents to FMR. With 18.6% of residents being renters and a DOM of 35 days, the demand is moderate but acceptable. Therefore, it depends on the specific financials of the property in question.
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.