Section 8 Fair Market Rent (FMR) for ZIP 76363 - 2027

Location: Knox County, TX | Metro: Knox County, TX

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$810
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,470
5 Bedrooms	$1,705
6 Bedrooms	$1,910
7 Bedrooms	$2,063
8 Bedrooms	$2,166

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

137

Median Household Income

$52,778

Housing Units

123

Renter Percentage

9.4%

Occupancy Rate

52.0%

Renter Occupied

To determine if a landlord should buy in ZIP code 76363 for Section 8 purposes, follow this decision tree based on the specific data points provided:

1) Does FMR $970 (metro FY 2026) clear debt service on a property?

No: If the Fair Market Rent (FMR) of $970 does not cover the debt service on a property, then purchasing in ZIP 76363 for Section 8 is not advisable. Debt service must be fully covered to ensure profitability.
Yes: Proceed to the next question.

2) Is market rent above, at, or below FMR?

Above: If the market rent is higher than the FMR of $970, landlords will likely face challenges in finding tenants willing to pay the lower Section 8 rates. This makes the investment less attractive unless there's a significant surplus of Section 8 vouchers.
At: If market rents align closely with the FMR, then the area is considered stable for Section 8 investments. Landlords can expect steady occupancy without significant financial strain.
Below: When market rents are below the FMR, Section 8 properties become highly desirable, attracting tenants quickly. However, this also means competition among landlords for these tenants might be high.

3) Are 9.4% renters + N/A-day DOM enough demand?

It depends: With 9.4% of the population renting, there is a baseline demand for rental properties. The key factor here is the number of days on market (DOM). If DOM is low, indicating quick turnover, then the demand is sufficient. High DOM values suggest difficulty in filling units, which could make Section 8 investment less favorable.

In summary, a landlord should consider the alignment between FMR and debt service, the comparison between FMR and market rent, and the balance between the percentage of renters and DOM to decide if ZIP 76363 is suitable for Section 8 investment. If FMR does not cover debt service, the answer is clear: do not invest. If market rents are significantly above FMR, the investment becomes riskier due to potential vacancy issues. Stable market conditions exist when market rents equal FMR, and high demand is indicated by low DOM despite only 9.4% of the population renting.

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.