Location: Wilbarger County, 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 | $760 |
| 1 Bedroom | $850 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $53,576 | 1.92% | A+ |
| 3BR | $1,400 | $101,594 | 1.38% | A |
| 4BR | $1,590 | $159,015 | 1% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 76360 (Electra, TX) provides valuable insights into potential investment returns. To begin, we annualize the Fair Market Rent (FMR) for a 2-bedroom unit at $910 per month, resulting in an annual income of $10,920. This figure is based on the Federal Fiscal Year 2024 data specific to the ZIP code. In contrast, the market rent for a similar unit is reported at $815 per month according to the Census ACS, leading to an annual income of $9,780.
Using the median home value of $77,435 as a basis, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the gross yield is calculated as follows: $10,920 divided by $77,435 equals approximately 14.1%. For the market rent scenario, the gross yield is $9,780 divided by $77,435, equating to roughly 12.6%.
Given the 31.8% renter density in Electra, TX, it's important to consider the practical implications of these figures. The N/A-day Days on Market (DOM) indicates that there is limited data available regarding how quickly properties are rented out, which could suggest a stable rental market but also a lack of recent activity to inform our analysis. Despite this, the higher FMR gross yield of 14.1% is more attractive to investors compared to the market rent gross yield of 12.6%, but it is less likely to be realized in practice due to the nature of government-subsidized housing programs.
In reality, landlords participating in the Section 8 program often face restrictions and regulatory requirements that can impact their overall net operating income (NOI), even if the gross yield appears favorable. Additionally, the actual demand for Section 8 units versus market-rate rentals should be considered. With a significant portion of residents renting, it's plausible that a mix of both subsidized and market-rate units would be present in the area. However, the lack of specific DOM data makes it difficult to predict the exact dynamics of the rental market in Electra.
To conclude, while the theoretical gross yields of 14.1% and 12.6% provide a starting point for evaluating potential investments, the more realistic scenario for most landlords would be closer to the market rent gross yield of 12.6%. This takes into account the broader context of the local rental market and the inherent limitations of the Section 8 program. Investors should conduct further research to determine the precise financial viability of properties in ZIP 76360.
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.