Location: Stephens County, TX | Metro: Eastland 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 | $820 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $148,467 | 1% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 76470, located in Stephens County, TX, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980, while the current market rent based on Census ACS data stands at $806. This indicates that landlords could potentially increase rents to align with the FMR without significant risk, given the established market rate is lower. However, they must ensure that any rent hikes do not exceed the affordability threshold for tenants.
Secondly, the acquisition cost is relatively low, with a median home value of $98,934. This figure suggests that buying properties in this ZIP code is affordable compared to many other areas. Unfortunately, the data does not provide the number of days on market (DOM) or the percentage of homes needing a price cut to sell, which would be crucial indicators of how quickly and easily properties can be acquired. Despite this lack of detail, the low median home value implies that investment in property acquisition is feasible.
Regarding tenant demand, the ZIP code has a population of 3,218, with 35.4% of residents being renters. This translates to approximately 1,140 rental units required to house the renters in the area. Given the size of the population, this demand suggests a stable rental market, though it is not exceptionally high.
Verdict: ZIP code 76470 offers an opportunity for landlords and small-portfolio investors due to its low median home value and potential for increasing rents towards the FMR. While tenant demand is present, it is not overwhelming, indicating a need for competitive pricing and quality offerings to attract and retain tenants. The market conditions are favorable for entry-level investments and those looking to build a portfolio without the risks associated with highly competitive markets.
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.