Location: Hamilton County, TX | Metro: Killeen-Temple, TX HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 76525 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $910, while the Census ACS data indicates that the average market rent is $753. This creates a significant gap of $157, or approximately 20.8%.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should view this ZIP code as a yield play. The higher FMR means that voucher tenants can afford rents above the current market rate, offering an opportunity for landlords to potentially increase their rental income without significantly altering their property management practices.
The ZIP code 76525 has a rental population comprising 22.2% of all households. With a median home value of $331,905 and a median income of $80,208, it's clear that owning a home is a common aspiration among residents, but the cost of living is also relatively high. As such, the presence of Section 8 voucher holders can be particularly beneficial for landlords looking to secure stable tenancy and predictable income.
However, there are considerations to keep in mind. The higher FMR does not necessarily translate into immediate profit, as landlords must still adhere to the Housing Quality Standards (HQS) and undergo regular inspections. Additionally, the administrative overhead associated with managing Section 8 properties includes timely rent certifications and compliance with federal regulations.
In summary, the gap between the FMR and market rent in ZIP 76525 presents a unique opportunity for landlords to leverage the financial stability of voucher tenants and achieve better yields than the open-market average. This is especially true given the economic context where the median income suggests a challenging balance between homeownership and affordability.
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.