Location: Young County, TX | Metro: Jack 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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $105,541 | 1.07% | B |
| 3BR | $1,560 | $212,468 | 0.73% | D |
| 4BR | $1,630 | $363,643 | 0.45% | F |
U.S. Census Bureau data (2024)
Graham, TX, located in ZIP code 76450, is a residential area with a total population of 12,999. The community has a relatively low rental rate at 23.2%, indicating that the majority of residents own their homes. The median household income in Graham is $75,258, which suggests a middle-class demographic. The median home value stands at $214,800, reflecting a modest cost of living compared to larger metropolitan areas.
The rent economics in Graham are favorable for both landlords and small-portfolio investors. According to the Fair Market Rent (FMR) for the metro area as of fiscal year 2026, the FMR is set at $1,060. However, the current market rent, based on Census ACS data, is $956. This indicates that there is potential for rents to increase closer to the FMR level, providing an opportunity for higher returns on investment.
For a hands-off voucher operator, Graham presents a stable environment given its modest median home value and middle-income population. The existing gap between the FMR and market rent can be leveraged to attract tenants who qualify for Section 8 housing assistance, ensuring a steady stream of rental income without the need for extensive property management efforts.
On the other hand, a hands-on value-add buyer might find Graham equally appealing due to the possibility of increasing rents towards the FMR level. By investing in property improvements and leveraging the Section 8 program, such an investor could enhance the quality of the rental units while still maintaining affordability for tenants. This approach would require active management but could yield higher long-term returns.
In conclusion, ZIP code 76450 in Graham, TX, offers a balanced mix of stability and growth potential for Section 8 investors. Whether you choose a passive or active strategy, the economic landscape supports successful operations through either hands-off or value-add approaches.
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.