Section 8 Fair Market Rent (FMR) for ZIP 76248 - 2027

Investment Score for ZIP 76248

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	$2,030
1 Bedroom	$2,050
2 Bedrooms	$2,420
3 Bedrooms	$3,170
4 Bedrooms	$3,980
5 Bedrooms	$4,617
6 Bedrooms	$5,171
7 Bedrooms	$5,585
8 Bedrooms	$5,864

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	$2,420	$333,540	0.73%	D
3BR	$3,170	$421,471	0.75%	D
4BR	$3,980	$636,303	0.63%	D
5BR	$4,617	$786,353	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76248 (Keller, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76248, as determined by HUD for 2026, is set at $2420 for a two-bedroom unit. This figure represents 16.9% of the median household income in Keller, which stands at $171,804. However, the actual rental market in Keller is significantly higher. According to Zillow, the median price for a two-bedroom home is $328,944, translating to a monthly rent of approximately $1,370 if we assume a 4% cap rate (which is common for residential properties). This means that the actual rent for a two-bedroom unit would be around $2,740 per month, nearly double the FMR. Given these figures, it is clear that there is a significant gap between the FMR and the actual rental rates. For Section 8 voucher holders, this implies that they will face considerable challenges in finding housing that meets their budgetary constraints. The voucher program is designed to cover up to 100% of the FMR, but in Keller, this amount would only cover about half of the actual rent for a two-bedroom unit. This makes it difficult for voucher holders to secure housing in the area without additional financial support. #### Affordability & Renter Profile Keller, TX has a relatively high median household income of $171,804, which suggests that the majority of residents have the financial capacity to afford the higher-than-average rental prices. Only 18.1% of the population are renters, indicating that the market is primarily composed of homeowners. The occupancy rate of 98.0% points to a very tight rental market, where demand outstrips supply, leading to higher rental prices. The high median income and low percentage of renters suggest that those who do rent in Keller likely fall into higher-income brackets. Given the disparity between FMR and actual rental costs, it is unlikely that many lower-income individuals can afford to live in the area using Section 8 vouchers alone. The tight market also indicates that there is little room for new rental units to enter without facing stiff competition from existing properties. #### Investor Angle From an investor’s perspective, the ZIP code 76248 presents a challenging scenario when considering cash flow based on FMR. The FMR for a two-bedroom unit is $2420, while the actual rental cost is estimated at $2,740. This means that if an investor were to rely solely on FMR to determine rental income, they would be undercharging by about $320 per month. To evaluate the investment grade, we need to consider the potential returns and risks. With a price-to-FMR ratio of 11.3x, it is evident that the market is highly inflated relative to the FMR. This ratio suggests that the property values are much higher than what HUD deems as fair market value. As a result, investors might find it difficult to achieve positive cash flow when renting to Section 8 voucher holders, given the constraints imposed by the voucher program. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median income and the tight rental market, investors should focus on attracting higher-income renters rather than relying on Section 8 vouchers. This strategy would likely yield better returns and avoid the limitations of the voucher program. 2. **Consider Property Value Adjustments**: If an investor is looking to purchase a property in Keller, TX, they should be prepared to pay a premium over the FMR. The 11.3x price-to-FMR ratio indicates that properties are valued well above the FMR, so any investment should account for this inflated valuation. 3. **Explore Alternative Rental Programs**: Investors might want to explore alternative rental assistance programs that offer higher subsidies or flexible terms compared to Section 8. This could help bridge the gap between FMR and actual rental costs, making the investment more viable. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 76248 is to **skip** this market. The significant disparity between the FMR and actual rental prices, combined with the tight market conditions, makes it difficult for investors to achieve positive cash flow when renting to voucher holders. Additionally, the high price-to-FMR ratio indicates that property values are inflated, which could lead to lower returns on investment. For investors interested in Keller, TX, it would be more prudent to target higher-income renters or explore alternative rental assistance programs that provide greater flexibility and higher subsidies. This approach would align better with the local economic conditions and rental market dynamics.

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.