Location: Fort Worth-Arlington, TX | Metro: Fort Worth-Arlington, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 76490 provides valuable insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit in this area, for fiscal year 2024, is set at $1200 per month. This translates to an annualized rental income of $14,400.
Given that the median home value in ZIP 76490 is not available, we must rely on other indicators to assess the gross yield. However, the lack of specific data on median home values and market rents complicates the calculation of an exact gross yield. For the sake of analysis, let's assume a hypothetical median home value to illustrate the concept.
If we were to use the annualized FMR of $14,400 to calculate the gross yield, we would need the median home value. Assuming a median home value of $200,000 for demonstration purposes, the implied gross yield would be 7.2%. This is calculated by dividing the annualized rental income ($14,400) by the median home value ($200,000).
Unfortunately, without a specific figure for market rent or median home value, it's challenging to provide a precise gross yield based on market conditions. However, the FMR-based yield can serve as a baseline for comparison. In ZIP 76490, with a renter density of 29.4%, the reality is that the market rent could vary significantly from the FMR, potentially affecting the actual gross yield.
The Days on Market (DOM) being not available also impacts our ability to gauge the speed at which properties are rented out. A lower DOM generally indicates a quicker turnover, which could positively influence the cash flow and overall yield.
In conclusion, while the FMR-based gross yield of 7.2% offers a starting point for evaluating investments under the Section 8 program, it's important to consider the broader context of market rents and property values. Given the limited data, the actual gross yield could be higher or lower depending on these factors. Landlords and small-portfolio investors should conduct further research to determine the most accurate gross yield for their investment decisions.
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.