Location: Milam County, TX | Metro: Killeen-Temple, TX HUD Metro FMR Area
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 | $910 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $322,865 | 0.48% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 76534 suggests a balanced market with implications for both pricing power and investment strategy over the next 12-24 months. The median home value stands at $337,754, indicating a stable residential market that has neither experienced significant inflation nor deflation recently. This stability is further reinforced by the lack of percentage of listings being reduced, which signals that sellers are maintaining their asking prices, reflecting confidence in the local housing demand.
The median days on market (DOM) being reported as N/A suggests either a very active market where homes sell quickly, or an issue with the availability of recent sales data. In the context of a stable median home value and no reductions in listing prices, it's reasonable to infer that homes are selling relatively quickly, which supports the idea of strong buyer interest and potentially limited inventory. This dynamic can bolster a landlord's pricing power, allowing for modest increases in rent without significantly impacting occupancy rates.
On the rental side, the Fair Market Rent (FMR) for ZIP 76534 in fiscal year 2024 is set at $1090, while the current market rent as per the Census ACS data is $625. This substantial gap between the FMR and actual market rents indicates potential for upward adjustment in rental pricing. Landlords and small-portfolio investors should consider gradually aligning their rents with the FMR to capitalize on the increased valuation, provided they can maintain or improve their property's appeal relative to competitors.
For long-term investors, the setup in ZIP 76534 does not present a strong appreciation thesis based on the current data. With a stable median home value and no indication of widespread price reductions, the area is likely to experience steady growth rather than rapid appreciation. Investors should focus on generating income through rental yields and consider the potential for gradual rent increases as the market adjusts towards the FMR. Additionally, improvements in property condition or amenities could enhance rental income and property value over time.
Landlords and small-portfolio investors should monitor the local real estate market closely, paying attention to any changes in the median home value, DOM, and rental prices. These metrics will continue to guide strategic decisions regarding pricing and property management in ZIP 76534.
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.