Section 8 Fair Market Rent (FMR) for ZIP 76424 - 2027

Investment Score for ZIP 76424

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

The ZIP code 76424 presents several challenges for a skeptical investor. Let's address these concerns with the available data.

• Will FMR $1,010 (metro FY 2026) cover the mortgage on a $136,652 home?: The Fair Market Rent (FMR) for ZIP 76424 is set at $1,010 for FY 2026. To evaluate if this will cover the mortgage, consider the typical interest rate and loan terms. Assuming a 30-year fixed-rate mortgage at 5%, the monthly principal and interest payment for a $136,652 home would be approximately $740. This amount is comfortably below the FMR, indicating that rental income could indeed cover the mortgage payments. However, it's crucial to factor in additional costs such as property taxes, insurance, and maintenance, which could reduce the net rental income.

• Is there enough renter demand at 22.2%?: The renter demand in ZIP 76424 stands at 22.2%. This percentage reflects the proportion of residents who are renters rather than homeowners. While this figure is relatively low compared to urban areas, it suggests a steady demand for rental properties. The key is to understand the local market dynamics and identify the types of renters most likely to occupy units in this area. Given the modest FMR and the potential for lower vacancy rates, the demand appears sufficient to support a rental portfolio.

• Will vouchers keep pace with $845 market rents?: The FMR of $1,010 is higher than the current market rent of $845, suggesting that vouchers can indeed help cover market rents. However, the actual value of vouchers depends on the specific policies and funding levels of the local housing authority. In ZIP 76424, landlords participating in the voucher program can expect to receive at least the $845 market rent, as the FMR provides a benchmark for acceptable payment standards. It's important to monitor local housing authority announcements for any changes in voucher policies or funding.

The data indicates that while there are valid concerns regarding the coverage of mortgage payments, renter demand, and voucher adequacy, the overall picture for ZIP 76424 remains positive for small-portfolio investors. The FMR exceeds the market rent, and the modest renter demand aligns with the local economic context. Nonetheless, ongoing vigilance is required to navigate the local real estate market effectively.

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.