Location: Montague County, TX | Metro: Wichita Falls, TX MSA
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 | $970 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $165,130 | 0.77% | D |
| 3BR | $1,760 | $237,097 | 0.74% | D |
| 4BR | $1,840 | $312,286 | 0.59% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,210 for ZIP 76230 (Bowie, TX) in fiscal year 2024 can cover the mortgage on a $234,013 home. The median home value in 76230 is $202,000, which suggests that the $234,013 home is above average. According to recent mortgage rates, the monthly payment on a $234,013 home with a typical down payment and interest rate could range between $900 and $1,100, depending on the specific terms. This means that the FMR of $1,210 could indeed cover the mortgage, leaving some room for maintenance and other expenses.
The rental vacancy rate in ZIP 76230 stands at 21.2%. This is higher than the national average, which typically hovers around 7-8%. However, the high vacancy rate does not necessarily indicate weak demand. It's important to note that the average rent for a 3+ bedroom property in the area is $750 - $999 per month. Given the FMR of $1,210, this suggests that there is sufficient demand among renters who qualify for the FMR. Additionally, the presence of 10 homes for rent listed on HAR.com indicates a modest but steady rental market.
The third objection concerns whether HUD vouchers will keep pace with market rents of $1,090. According to the latest data from the FMR Lookup Tool, the maximum Section 8 payment amount in Bowie, TX for 2026 ranges from $857 to $1,689 per month. This indicates that while some vouchers may not fully cover the market rent of $1,090, others can exceed it. Investors should consider the mix of voucher sizes and the potential for higher-end units to command rents closer to the upper end of the voucher scale. There is no definitive data indicating whether voucher amounts will increase to match rising market rents, but the current range offers some assurance that at least a portion of the market can be served effectively.
In summary, the FMR of $1,210 can likely cover the mortgage on a $234,013 home, the rental market shows modest demand despite a higher-than-average vacancy rate, and HUD vouchers offer a range of payment amounts that can support a significant portion of the rental market. While the data does not provide a complete picture of future trends, it supports a cautiously optimistic outlook for real estate investments in ZIP 76230.
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.