Section 8 Fair Market Rent (FMR) for ZIP 76522 - 2027

Investment Score for ZIP 76522

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	$890
1 Bedroom	$900
2 Bedrooms	$1,110
3 Bedrooms	$1,540
4 Bedrooms	$1,870
5 Bedrooms	$2,169
6 Bedrooms	$2,429
7 Bedrooms	$2,623
8 Bedrooms	$2,754

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	$1,110	$122,076	0.91%	C
3BR	$1,540	$194,022	0.79%	D
4BR	$1,870	$273,815	0.68%	D
5BR	$2,169	$334,657	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76522 (Copperas Cove, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76522, as set by HUD for 2026, is $1180 for a two-bedroom unit. This figure represents 19.6% of the median household income in Copperas Cove, which is $72,206. The FMR is designed to reflect the average rent that voucher holders can afford, but it is important to understand how this compares to actual rents in the area. According to Zillow, the median price for a two-bedroom rental property is $115,414, which translates to a monthly rent of approximately $961.67 based on typical mortgage calculations. However, the price-to-FMR ratio is 8.2x, indicating that the actual purchase price of properties is significantly higher than the rent they generate. This suggests that landlords may be hesitant to accept Section 8 vouchers due to the low rent relative to their investment costs. #### Affordability & Renter Profile In ZIP code 76522, 37.9% of the population are renters, which means there are around 15,975 households renting in Copperas Cove. With an occupancy rate of 94.8%, the rental market appears to be relatively tight, indicating that there is strong demand for rental units. Given the median household income and the percentage of renters, it is likely that many residents are low-income families who rely on government assistance such as Section 8 vouchers to find affordable housing. The FMR for a three-bedroom unit is $1640, which is still only 22.7% of the median household income, suggesting that even larger units are within reach for many families. However, the high price-to-FMR ratio indicates that the cost of purchasing a rental property far exceeds the rent that can be charged under the voucher program, making it challenging for these families to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 76522 presents a mixed picture. While the median rent for a two-bedroom unit is slightly below the FMR ($961.67 vs. $1180), the high price-to-FMR ratio of 8.2x implies that the purchase price of properties is much higher than what can be recouped through rental income alone. For example, a two-bedroom property priced at $115,414 would have a monthly mortgage payment of approximately $961.67, assuming a 30-year fixed-rate mortgage at a typical interest rate. When factoring in additional expenses such as maintenance, insurance, and property taxes, the net cash flow for an investor accepting Section 8 vouchers would likely be negative. This makes the ZIP code less attractive for investors seeking positive cash flow from their rental investments. #### Investment Grade Given the high purchase price relative to the FMR, the investment grade for ZIP code 76522 is low. The primary constraint for voucher holders is the limited availability of units that accept Section 8, as many landlords may prefer higher-paying tenants or those without the administrative burden of the voucher program. Additionally, the high price-to-FMR ratio means that investors are unlikely to achieve a positive cash flow, making the ZIP code a risky investment for those focused solely on Section 8 properties. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on one-bedroom or studio units, where the FMR is $940. These units are more likely to generate positive cash flow, given the lower purchase prices compared to larger units. For instance, a one-bedroom property might be priced at a lower multiple of the FMR, potentially allowing for a better return on investment. 2. **Seek Non-Section 8 Tenants**: Given the high price-to-FMR ratio, investors should explore opportunities to attract non-Section 8 tenants who can pay market rates. This could involve renovating properties to increase their value and appeal to a broader range of potential tenants. By doing so, investors can mitigate the risk of negative cash flow and improve their overall returns. 3. **Consider Short-Term Rentals**: Another strategy could be to convert some properties into short-term rentals, such as vacation homes or Airbnb listings. This approach allows investors to charge higher rates during peak tourist seasons, thereby offsetting the lower long-term rental income from Section 8 properties. However, this strategy requires careful consideration of local regulations and market demand for short-term stays. #### Bottom Line For investors focused specifically on Section 8 properties, the ZIP code 76522 is a "Skip" recommendation. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Instead, investors might want to look for areas with a lower price-to-FMR ratio or explore alternative strategies such as attracting non-Section 8 tenants or converting properties to short-term rentals. However, if an investor is willing to take on the challenge and has a diversified portfolio, they might consider investing in smaller units (one-bedroom or studio) where the FMR is $940, as these units are more likely to generate positive cash flow. Overall, the ZIP code 76522 is not ideal for Section 8-focused investments due to the significant financial constraints and low potential returns.

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.