Section 8 Fair Market Rent (FMR) for ZIP 76455 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering the ZIP code 76455 might have several concerns regarding the feasibility of investing in Section 8 properties. Let's address these concerns using the available data.

• Will FMR $1,050 (metro FY 2026) cover the mortgage on a $261,129 home? The Fair Market Rent (FMR) for ZIP 76455 is set at $1,050 for FY 2026. To determine if this will sufficiently cover the mortgage, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment on a $261,129 home would be approximately $1,250. This means that the FMR of $1,050 would not fully cover the mortgage. However, it's important to note that this calculation does not account for potential tax benefits or other subsidies that could reduce the effective cost of the mortgage.
• Is there enough renter demand at 17.0%? The percentage of renters in ZIP 76455 is 17.0%. While this figure is lower than the national average, it still represents a significant portion of the population. The critical factor here is whether the number of renters seeking housing assistance through Section 8 matches the supply of affordable homes. If the demand for subsidized housing is high relative to the supply, landlords can expect a steady stream of tenants. However, the data provided does not specify the exact number of renters seeking Section 8 assistance, which is necessary to make a definitive assessment.
• Will vouchers keep pace with $1,031 market rents? The current market rent for ZIP 76455 is $1,031. With the FMR set slightly higher at $1,050, it suggests that vouchers should theoretically cover the market rent. However, the actual amount paid by vouchers can vary based on the size of the unit and the income of the tenant. It's also worth noting that voucher payments are adjusted annually based on changes in the FMR, so they should generally keep up with inflation and market trends. Still, the data does not provide a detailed breakdown of how voucher amounts are calculated, which could be crucial for understanding the financial impact on landlords.

The data clearly shows that while the FMR is close to covering the mortgage, it falls short by about $200 per month. The renter demand, though relatively low, still exists, but without knowing the exact number of Section 8 applicants, it's challenging to predict the competition for tenants accurately. Lastly, vouchers are expected to cover the market rent, but the specifics of how voucher amounts are determined remain unclear. These points highlight the need for further investigation into local rental dynamics and landlord policies to make a fully informed investment decision.

Data Sources: FMR data from HUD (2027). 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.