Location: Wilbarger County, TX | Metro: Wilbarger County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 76364 reveals a nuanced picture that investors should consider carefully. The Federal Market Rent (FMR) for a 2-bedroom apartment is set at $1,490 annually for Fiscal Year 2026, based on metro rates. Meanwhile, the market rent stands at $1,794, according to the Census ACS data.
To derive the gross yield, we need to compare these rental figures against the median home value. However, for ZIP 76364, the median home value is not available (N/A), which complicates the direct calculation of the cap rate. Typically, the cap rate is derived by dividing the annual net operating income (NOI) by the property's value. Without a median home value, we cannot calculate a precise cap rate, but we can still provide an implied gross yield based on the rental income.
Given the 23.9% renter density, it is important to note that a significant portion of the population in ZIP 76364 might be looking for rental housing. This suggests a steady demand for rental properties, including those under the Section 8 program. The N/A-day DOM (days on market) indicates that there is no readily available data on how quickly homes are rented out, which could vary widely depending on the specific conditions of the local real estate market.
In the case of Section 8, the implied gross yield would be based on the $1,490 annualized FMR. For market rent, the implied gross yield would be higher, at $1,794 per year. The difference between these two yields is $304 annually, or about $25.33 monthly, which reflects the premium landlords can potentially charge over the subsidized rate.
Considering the 23.9% renter density, the market rent scenario appears more realistic for landlords and small-portfolio investors who wish to maximize their returns. While Section 8 provides stable income, the higher market rent could offer better financial performance for those willing to navigate the competitive rental landscape.
Investors should also factor in the specifics of the local market, such as vacancy rates and competition, to determine which scenario aligns best with their investment strategy. The choice between Section 8 and market rent should be informed by a comprehensive understanding of the local real estate dynamics.
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.