Location: Mills County, TX | Metro: Brown County, TX
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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $160,862 | 0.64% | D |
| 3BR | $1,350 | $241,276 | 0.56% | F |
| 4BR | $1,470 | $349,373 | 0.42% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 76442 (Comanche, TX) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a $212,985 property?
Yes. The FMR of $970 is designed to ensure that a landlord can cover their costs, including debt service, maintenance, and profit. For a property valued at $212,985, this FMR should be sufficient to meet these obligations, assuming standard financing terms.
No. If the landlord has higher-than-average financing costs or other extraordinary expenses, the FMR of $970 might not be enough to clear the debt service. In such cases, investing in this ZIP code would not be advisable.
It Depends. This answer applies if the landlord's financial situation or the property's condition is unusual. Typically, however, the FMR of $970 should be adequate for a property priced at $212,985 under normal circumstances.
2) Is the market rent of $915 above, at, or below the FMR?
Above. If the market rent were above the FMR, landlords would generally prefer to lease to non-Section 8 tenants. However, since the market rent of $915 is below the FMR, leasing to Section 8 tenants becomes more attractive.
At. If the market rent equaled the FMR, landlords might be indifferent between Section 8 and market-rate tenants. But in Comanche, TX, the market rent is below the FMR, making Section 8 more favorable.
Below. With the market rent at $915, which is below the FMR, landlords should consider Section 8 tenants as they will receive a higher rental income than what the market currently offers.
3) Are 20.3% renters plus an unknown number of days on the market (DOM) indicative of enough demand?
Yes. A 20.3% rental rate suggests there is a reasonable demand for rental properties in this area. While the exact DOM is not available, a significant rental percentage implies that units typically fill up relatively quickly.
No. If the landlord requires a high turnover rate or finds the rental percentage insufficient, they might reconsider investing in this ZIP code. However, the current data indicates a healthy level of rental demand.
It Depends. This would apply if the landlord has specific requirements regarding DOM or the rental rate is not high enough to guarantee steady occupancy. Given the rental rate, the likelihood is that demand is sufficient, but the landlord must weigh their own criteria.
In summary, based on the provided data, the FMR of $970 should cover debt service for a $212,985 property, the market rent of $915 is below the FMR making Section 8 more appealing, and the rental rate of 20.3% suggests a decent demand for rentals. Therefore, landlords should find ZIP 76442 (Comanche, TX) to be a viable investment for Section 8 properties.
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.