Section 8 Fair Market Rent (FMR) for ZIP 76262 - 2027

Investment Score for ZIP 76262

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	$1,680
1 Bedroom	$1,730
2 Bedrooms	$2,030
3 Bedrooms	$2,590
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,030	$315,445	0.64%	D
3BR	$2,590	$476,044	0.54%	F
4BR	$3,280	$660,734	0.5%	F
5BR	$3,805	$1,114,615	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76262 (Roanoke, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76262 is set by HUD for 2026. For a two-bedroom unit, the FMR is $2110 per month. This amount represents 16.7% of the median household income in Roanoke, which is $151,250. The FMRs for other bedroom sizes are as follows: 0BR at $1730, 1BR at $1800, 3BR at $2690, and 4BR at $3400. These figures provide a benchmark for rent levels that are considered affordable for low-income families receiving Section 8 vouchers. However, comparing these FMRs to actual rental rates reveals significant discrepancies. The Zillow median price for a two-bedroom home in Roanoke is $319,612. While this is a median home sale price, it can be used to infer rental values. If we assume a typical rental yield of around 5%, the implied monthly rental rate would be approximately $2663. This is significantly higher than the $2110 FMR, indicating a substantial gap between what is considered fair market rent and actual rental rates. This gap creates a challenging environment for voucher holders. They must find landlords willing to accept the lower FMR rates, which could be difficult given the high demand and limited supply of affordable housing. Additionally, the occupancy rate of 96.8% suggests that there is little vacancy available for voucher holders, further complicating their search for suitable housing. #### Affordability & Renter Profile Roanoke, TX, has a population of 43,620, with 26.7% of residents being renters. Given the median household income of $151,250, the majority of residents likely have the financial means to afford market-rate rentals. However, the 26.7% of renters represent a significant portion of the population who may struggle to find affordable housing. The high median household income and the relatively low percentage of renters suggest that this is a tight market with strong demand for both rentals and homeownership. The high occupancy rate of 96.8% also supports this conclusion, indicating that most units are occupied and there is little slack in the rental market. Given the high median income, the typical renter profile in Roanoke likely includes young professionals, families, and individuals who may have slightly lower incomes but still fall within the middle class. The high cost of living and rental rates make it particularly challenging for low-income families to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 76262 presents mixed opportunities. The Fair Market Rent (FMR) for a two-bedroom unit is $2110, while the implied rental rate based on the Zillow median price is $2663. This implies that landlords accepting Section 8 vouchers may face a significant shortfall in potential rental income compared to market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a mortgage payment of around $1200 (based on a 30-year fixed rate mortgage at 4% interest on the Zillow median price), property taxes of $250, insurance of $100, and maintenance costs of $100, the total monthly expenses would be approximately $1650. At the FMR of $2110, this leaves a net cash flow of $460 per month, which is positive but relatively thin. The investment grade for properties in this ZIP code would depend on factors such as the stability of the tenant base, the likelihood of finding voucher holders willing to pay the FMR, and the overall economic health of the area. Given the high median income and strong local economy, the risk of default is likely low, making this a moderate-grade investment. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR-to-market rent ratio, investors should focus on smaller units like one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1800, which is closer to the implied rental rate of $2663. This reduces the financial burden on landlords and increases the chances of attracting tenants. 2. **Target Areas with Higher Vacancy Rates**: Although the occupancy rate is high at 96.8%, investors might want to target areas within Roanoke that have slightly higher vacancy rates. This could help in securing a steady stream of tenants and reducing the risk of prolonged vacancies. 3. **Consider Property Enhancements**: To attract voucher holders, landlords might need to offer properties that are well-maintained and meet certain quality standards. Investing in property enhancements could increase the likelihood of finding suitable tenants and reduce the risk of turnover. #### Bottom Line For Section 8-focused investors, the ZIP code 76262 (Roanoke, TX) presents a challenging but potentially rewarding market. The high median income and strong local economy support a stable tenant base, but the significant gap between FMR and market rates makes cash flow management critical. **Recommendation**: **Hold**. Investors should hold onto existing properties in this ZIP code due to the strong local economy and potential for appreciation. However, new investments should be carefully evaluated, focusing on smaller units and areas with slightly higher vacancy rates to ensure better cash flow and tenant retention. In summary, while Roanoke offers a robust economic environment, the high cost of living and rental rates create a complex landscape for Section 8 voucher holders and investors alike. Careful consideration of property size, location, and quality will be essential for success in this 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.