Location: Wichita Falls, 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 | $850 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $114,370 | 1.02% | B |
| 3BR | $1,590 | $199,998 | 0.8% | D |
| 4BR | $1,800 | $298,240 | 0.6% | D |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 76367, Texas, for Section 8 properties should follow this decision tree:
1) Does FMR $1310 (zip FY 2024) clear debt service on a $192,150 property?
Yes. The Fair Market Rent (FMR) of $1310 per month is sufficient to cover the debt service on a property valued at $192,150. Assuming an average mortgage rate and a standard loan-to-value ratio, the monthly payment would be less than $1310, making this ZIP code financially viable for Section 8 properties.
2) Is market rent $946 (Census ACS) above, at, or below FMR?
The market rent of $946 is below the FMR of $1310. This means that landlords participating in the Section 8 program can expect higher rental income compared to the general market, which is advantageous. However, it also indicates that the general market might not support rents as high as the FMR without the subsidy.
3) Are 11.5% renters + N/A-day DOM enough demand?
It depends. With 11.5% of the population being renters, there is some demand for rental properties. However, the lack of data on the days on market (DOM) makes it difficult to assess the speed at which rental units are filled. In ZIP 76367, if the demand for Section 8 housing is strong, then the 11.5% renter population could be enough to sustain occupancy rates. If demand is weak, even the higher FMR might not be enough to attract tenants.
If the landlord can secure a property where the $1310 FMR covers the debt service and there is a steady demand for subsidized housing, then ZIP 76367 could be a good investment. The gap between the market rent ($946) and the FMR ($1310) suggests that the subsidy will significantly increase the landlord's cash flow, but the success of such an investment hinges on the ability to fill vacancies quickly and maintain consistent tenant turnover.
To conclude, the landlord should proceed with caution. While the financials look favorable due to the FMR being above the market rent and covering the debt service, the lack of data on DOM and the relatively low percentage of renters in the area introduce risk. A thorough local market analysis, including contacting local housing authorities and real estate agents, is recommended before making a final decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.