Location: Wichita Falls, 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 | $810 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $74,221 | 1.48% | A |
| 3BR | $1,480 | $152,419 | 0.97% | C |
| 4BR | $1,670 | $204,371 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 76306 in Wichita Falls, TX, reveals several key points regarding its viability for Section 8 real-estate investment.
Firstly, the rent math does not favor Section 8 participation. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1040, which is notably lower than the market rent of $1,270 (ZORI). This discrepancy means that landlords would receive less income per unit compared to what they could potentially earn in the private rental market.
Secondly, the acquisition cost is relatively low, with a median home value of $137,413. This makes purchasing properties in this area an affordable option for investors looking to enter the market. Additionally, the average days on market (DOM) of 35 days and a price-cut share of just 0.2% suggest that homes sell quickly and without significant price reductions, indicating a stable and efficient local real estate market.
Lastly, there is a substantial tenant demand in ZIP 76306. With a population of 13,963, over 41.4% of residents are renters, providing a solid pool of potential tenants for rental properties. However, it's important to note that while there is demand, the supply of rental units must be considered to ensure steady occupancy rates.
In conclusion, while the acquisition of properties in ZIP 76306 is financially feasible due to the low median home value and quick sales, the rent math does not support Section 8 participation given the disparity between FMR and ZORI. Despite this, the strong tenant demand suggests that landlords can still find success in the area if they focus on private rentals or seek other government assistance programs that offer better financial returns.
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.