Location: Wichita Falls, TX | Metro: Wichita Falls, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $910 for ZIP code 76351 can sufficiently cover the mortgage payments on a home valued at $142,009. To evaluate this, consider that the FMR represents the maximum amount a landlord could charge under the Section 8 program. The average monthly mortgage payment for a home priced at $142,009, assuming a 30-year fixed rate loan with an interest rate of 4%, would be approximately $670. Therefore, the FMR of $910 can indeed cover the mortgage payment with a surplus of $240 per month.
The investor may also doubt if there's sufficient rental demand at 25.0%. This percentage indicates that a quarter of the housing units in the area are rented out. While this figure may seem low compared to other markets, it still represents a significant number of potential tenants. Additionally, the rental vacancy rate, which measures the availability of rental units, is crucial but not provided here. A lower vacancy rate typically signifies higher demand for rentals. Without specific vacancy rate data, we cannot conclusively determine the level of demand but can infer that a quarter of the housing stock being rented suggests there is a baseline of renters.
Another concern is whether the voucher amounts will keep up with the market rents of $531. The FMR of $910 is designed to reflect the 40th percentile of market rents, meaning that 40% of rental units in the area are priced below this amount. Given that the average market rent is $531, the FMR should generally cover most market rents. However, the specific voucher amount for ZIP 76351 is not provided, so we cannot definitively state whether the vouchers will match the FMR. Historically, voucher amounts have been adjusted annually to account for inflation and changes in the local housing market, suggesting that they are likely to remain competitive with market rents.
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.