Location: Killeen-Temple, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
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 | $1,520 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,410 | $237,957 | 1.01% | B |
| 4BR | $2,830 | $271,309 | 1.04% | B |
U.S. Census Bureau data (2024)
ZIP code 76537, located within the Killeen-Temple, TX HUD Metro FMR Area, exhibits characteristics that suggest it could be considered a value pocket within the broader metropolitan context. The Fair Market Rent (FMR) for ZIP 76537 in fiscal year 2024 is set at $1,940, which is higher than the market rent of $1,785. This discrepancy indicates that the government's estimate of rental affordability slightly exceeds what the market currently demands, potentially offering landlords a competitive edge when setting rents.
The median home value in ZIP 76537 stands at $257,957, which is lower than many other ZIP codes within the Killeen-Temple area. This suggests that property acquisition costs in 76537 might be relatively affordable compared to the rest of the metro, making it an attractive option for investors looking to maximize their investment returns while minimizing initial capital outlay.
A key indicator of potential Section 8 attractiveness is the 20.5% renter share, which is notable but not exceptionally high. However, combined with the below-average home values, this could signal a sweet spot for landlords participating in the Section 8 program. Landlords in 76537 can leverage the higher FMR to secure better rental income while benefiting from lower property acquisition costs.
To further contextualize, let us examine the typical metrics for ZIP codes within the Killeen-Temple, TX HUD Metro FMR Area. Generally, these ZIPs have higher home values and either similar or slightly lower renter shares. The fact that ZIP 76537 has both a lower home value and a significant renter share makes it stand out as a potential value pocket.
Investors should also consider that the higher FMR compared to market rent might attract more Section 8 tenants, thereby increasing the demand for rental properties within this ZIP code. This dynamic can be particularly beneficial for landlords who are willing to comply with the requirements of the Section 8 program.
In summary, ZIP 76537 appears to offer a favorable balance of affordability and demand, positioning it as a value pocket within the Killeen-Temple, TX HUD Metro FMR Area. Its specific figures—$1,940 FMR, $1,785 market rent, $257,957 home value, and 20.5% renter share—suggest that it could be an advantageous location for those interested in Section 8 investments.
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.