Location: Montague County, TX | Metro: Montague County, TX
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 | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $165,930 | 0.61% | D |
| 3BR | $1,410 | $242,337 | 0.58% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 76255, which encompasses Nocona, TX, stands at $55,841. Against this backdrop, the market rate for rent, according to Census ACS data, is $796 per month. This suggests that a significant portion of households in the area may struggle to meet the market rate without financial strain, given that the average household would allocate nearly 18% of their gross monthly income to rent alone.
In contrast, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990 per month. This figure represents the maximum amount that a Section 8 voucher holder can pay towards rent, with the remainder subsidized by the government. The discrepancy between the market rate ($796) and the voucher payment standard ($990) highlights a substantial affordability gap for renters in Nocona.
With 22.5% of the 6,053 population being renters, competition among landlords is likely to be fierce. Properties that align with the market rate will attract tenants who can afford it, but those that accept Section 8 vouchers could see increased demand from households seeking more affordable housing options. The higher voucher payment standard means that landlords accepting vouchers might receive closer to the actual market value of their properties, potentially mitigating the risks associated with lower rental incomes.
The takeaway for landlords considering their strategy is clear: while cash-paying tenants may offer stability and simplicity, the higher voucher payment standard of $990 compared to the market rate of $796 provides an opportunity to capture a larger share of the renter market without significantly compromising on income. Landlords should weigh the benefits of attracting voucher holders against any administrative complexities involved in participating in the Section 8 program.
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.