Location: Wichita Falls, TX | Metro: Wichita Falls, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 76311 reveals a significant gap between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development and the actual market rent based on Census ACS data. For fiscal year 2024, the FMR in ZIP 76311 is $1560, while the average market rent stands at $1460. This means that the FMR exceeds the market rent by $100, or approximately 6.85%. In this context, where 99.7% of residents are renters and the median household income is $77,404, the implications for landlords and small-portfolio investors are clear.
The higher FMR compared to the market rent indicates that landlords can receive a subsidized rent rate that is above what they might charge in an open market scenario. This makes the ZIP 76311 a favorable location for a yield play, especially for those who have properties eligible for the Housing Choice Voucher program, commonly known as Section 8. Landlords can expect a steady and slightly elevated income stream due to the voucher subsidy, which compensates for the difference between the market rent and the FMR. This is particularly beneficial given the high percentage of renters and the relatively low median income, suggesting a robust demand for affordable housing options.
However, it's important to note that accepting Section 8 tenants comes with its own set of considerations. The cost of maintaining compliance with HUD standards and the administrative burden of managing voucher tenants can offset some of the financial gains. Additionally, the turnover rate and the potential for longer vacancy periods could affect the overall yield. Despite these challenges, the opportunity to secure rental income that is above the local market rate makes ZIP 76311 an attractive area for Section 8 participation.
In summary, the gap between the FMR and the market rent in ZIP 76311 presents a compelling case for landlords and small-portfolio investors to consider the benefits of the Section 8 program. With a median income of $77,404 and a near-total reliance on rental housing, the ZIP code offers a stable tenant pool and the prospect of enhanced rental yields through voucher subsidies.
Data Sources: FMR data from HUD (2027). 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.