Section 8 Fair Market Rent (FMR) for ZIP 76439 - 2027

FY 2027 Fair Market Rent Rates

The investment landscape in ZIP code 76439 for Section 8 properties presents several challenges that potential landlords should be aware of. First, tenant turnover can be problematic when comparing the market rent to the Federal Market Rent (FMR) set at $1530 for FY 2024. This discrepancy suggests that landlords might struggle to retain tenants who are accustomed to the subsidized rates, leading to frequent vacancies.

Vacancy exposure is another significant risk due to the lack of data on the average days on market (DOM). Without this information, it's difficult to predict how long a property might remain vacant between tenancies. Extended periods without rental income can strain cash flow and affect profitability.

Deferred maintenance is also a concern, especially considering the limited data on typical home values and median incomes in the area. Properties with lower values and incomes may require more upkeep, which can be costly and time-consuming. Landlords must be prepared to invest in regular maintenance to keep their properties up to code and habitable.

However, these risks are somewhat mitigated by the high renter share in the area, though the exact percentage is not available. High renter density generally indicates higher demand for housing, including those seeking assistance through Section 8 vouchers. This increased demand can help stabilize occupancy rates and provide a steady stream of potential tenants.

In summary, ZIP code 76439 poses a moderate risk for a first-time Section 8 landlord, with challenges in tenant retention and maintenance costs balanced by strong rental demand.

Data Sources: FMR data from HUD (2027).

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.