Location: Montague County, TX | Metro: Dallas, 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 | $890 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $249,756 | 0.46% | F |
| 3BR | $1,610 | $388,627 | 0.41% | F |
| 4BR | $1,910 | $525,368 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 76234, located in Decatur, TX, presents an interesting scenario for both renters and landlords. The median income for households in this area stands at $93,727, which is a solid financial foundation. However, when considering the market rate for rent, which is set at $1,244 (ZORI), the situation becomes more nuanced.
Compared to the Fair Market Rent (FMR) of $1,240, as determined for zip code 76234 for fiscal year 2024, the market rate is nearly identical. This means that the Housing Choice Voucher program, commonly known as Section 8, would cover almost the entirety of the market rate, leaving little to no difference between voucher payments and cash rents.
In Decatur, where 21.1% of the population are renters, the affordability gap between the median income and the ZORI is relatively narrow. A household earning the median income could reasonably afford the market rent without significant strain. However, this also suggests that landlords might face competition from other housing options, as renters have the financial capability to explore various living arrangements beyond just subsidized housing.
For landlords, the decision to accept vouchers versus relying on cash-paying tenants hinges on several factors. Given that the FMR closely aligns with the ZORI, landlords can expect steady rental income through vouchers without a substantial loss compared to cash rents. Moreover, the streamlined process of voucher payments can offer a reliable source of income with less risk of non-payment.
The takeaway for landlords is clear: accepting vouchers can be a strategic move, especially in a market where the financial gap between median income and rent rates is minimal. It ensures a stable tenant base while minimizing the risk associated with non-payment. However, landlords should also consider the administrative requirements and potential delays in voucher processing. Balancing these factors with the local demand for housing will determine the most effective strategy for success in the Decatur rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.