Section 8 Fair Market Rent (FMR) for ZIP 76513 - 2027

Investment Score for ZIP 76513

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$980
1 Bedroom	$990
2 Bedrooms	$1,210
3 Bedrooms	$1,680
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,210	$178,971	0.68%	D
3BR	$1,680	$274,259	0.61%	D
4BR	$2,020	$375,207	0.54%	F
5BR	$2,343	$470,018	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76513 (Belton, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76513 in Belton, TX, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1300 per month. This amount represents 19.3% of the median household income in the area, which is $80,661. The FMR is designed to reflect the average rent that voucher holders can afford in the local rental market. However, the actual rents in the market may differ significantly from these figures. Given the occupancy rate of 94.3%, it suggests that there is a strong demand for housing in the area. The high occupancy rate indicates that there might be limited availability of units, especially those that fall within the FMR range. Voucher holders face constraints due to the limited supply of affordable units, as landlords may prefer higher-paying tenants or those without the administrative burden associated with Section 8 vouchers. #### Affordability & Renter Profile In ZIP code 76513, 28.1% of households are renters. This percentage is relatively low compared to many urban areas but still significant given the total population of 45,928. The median household income of $80,661 suggests that the majority of residents have above-average incomes, which could contribute to a competitive rental market. The Zillow median price for a two-bedroom home is $179,036, which is a stark contrast to the FMR of $1300 per month. The price-to-FMR ratio of 11.5x highlights the significant gap between the cost of homeownership and rental affordability. This disparity makes it challenging for lower-income individuals to find affordable housing options, particularly if they rely on Section 8 vouchers. Given the high occupancy rate and the relatively low percentage of renters, it is likely that the market is tight, with fewer units available compared to the number of potential renters. This tightness could lead to upward pressure on rents, making it even harder for voucher holders to secure housing. #### Investor Angle From an investor's perspective, the ZIP code 76513 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1300 per month, which is the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the market are likely higher, given the price-to-FMR ratio of 11.5x. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates and the cost of acquiring and maintaining properties. Given the Zillow median price for a two-bedroom home and the high price-to-FMR ratio, it is clear that the rental market is not aligned with the FMR. Investors who are willing to accept Section 8 vouchers would need to ensure that their acquisition costs and maintenance expenses are low enough to generate a profit at the FMR. The investment grade for this ZIP code would depend on the specific property and its location. Properties that are well-maintained and located in desirable areas may attract higher rents, but they would also be more expensive to acquire. Conversely, properties in less desirable areas may be more affordable but could struggle to command rents close to the FMR. #### Specific Actionable Insights 1. **Focus on Well-Maintained Properties**: Investors should focus on acquiring and maintaining properties that are in good condition. This will help in attracting tenants who are willing to pay closer to the FMR, thereby ensuring better cash flow. 2. **Location Matters**: Properties located in desirable areas within ZIP code 76513 may command higher rents, but they will also be more expensive to purchase. Investors should carefully evaluate the balance between location desirability and acquisition costs. 3. **Consider Multi-Family Units**: Given the high occupancy rate and the tight rental market, multi-family units may provide better returns. The FMR for larger units (e.g., three-bedroom and four-bedroom) is $1800 and $2180 respectively, which could offer more attractive rental yields. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 76513 is to **Hold**. While the rental market is tight and there is strong demand for housing, the actual rents far exceed the FMR. This means that investors would need to be selective about the properties they choose to invest in, focusing on those that can be acquired and maintained at a cost that allows for profitability at the FMR. Additionally, the high price-to-FMR ratio suggests that the market is not aligned with the needs of voucher holders, making it challenging to find properties that are both affordable and profitable. However, investors who are willing to take on the challenge and can manage their costs effectively may find opportunities in this market. The key is to identify properties that can be rented out at or near the FMR while still generating a positive cash flow.

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.