Location: Hood County, TX | Metro: Erath 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 | $1,150 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,960 | $331,008 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 76476 reveals some key insights for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area, based on fiscal year 2026 data, is set at $1,370 annually. This translates into a monthly rental amount of approximately $114.17.
In contrast, the market rent for a similar 2-bedroom unit, according to Census ACS data, stands at $1,434 annually, equating to about $119.50 per month. Using these figures, we can calculate the implied gross yield for both scenarios. For the FMR scenario, the annual rental income would be $1,370, leading to an implied gross yield of around 0.33% ($1,370 / $417,025).
When considering the market rent figure, the annual rental income increases to $1,434, resulting in an implied gross yield of approximately 0.34% ($1,434 / $417,025). This slight increase in yield between the two scenarios is important, yet it remains minimal due to the high median home value of $417,025 in the area.
Given the 17.5% renter density in ZIP 76476, it is evident that the majority of homeowners are likely to be owner-occupiers rather than landlords. This low renter population suggests that the market rent scenario is more realistic for potential investment opportunities. However, the lack of available data on the days on market (DOM) for rentals complicates the assessment of how quickly units might turn over or how competitive the market is.
Despite the minor difference in gross yields between the FMR and market rent scenarios, the latter offers a slightly higher return, making it the preferable option for investors seeking to maximize their earnings. It's crucial for investors to understand that while the gross yields are low, they should consider other factors such as property management costs, vacancy rates, and the stability of Section 8 payments when evaluating the overall profitability of their investments in ZIP 76476.
To summarize, the implied gross-yields for a 2-bedroom property in ZIP 76476 are 0.33% under the FMR scenario and 0.34% under the market rent scenario. While both figures are modest, the market rent scenario provides a more accurate reflection of potential rental income, given the area's characteristics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.