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)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,110 for ZIP code 76538 will sufficiently cover the mortgage on a home valued at $411,363. According to recent real estate data, the median home value in ZIP code 76538 is much lower, at approximately $125,700. This suggests that the home in question is significantly above the median value for the area, which could impact its ability to attract tenants willing to pay the FMR. However, it's important to note that the average mortgage payment for homes in this price range is not provided directly in the data. Typically, mortgage payments depend on interest rates and loan terms, which are not specified here.
The rental demand in ZIP code 76538 stands at 15.3%. While this percentage indicates some level of demand, it is relatively low compared to national averages. The data also reveals that the area has a high vacancy rate, suggesting that there may be a surplus of rental properties. This could make it challenging to consistently fill units and maintain a steady stream of rental income. Moreover, the median age of residents in ZIP code 76538 is 49.2 years, indicating a demographic skew towards older individuals who may have different housing needs and preferences. Therefore, while there is some rental demand, it may not be sufficient to ensure occupancy at the desired rent levels.
Regarding housing vouchers, the data does not provide specific information on voucher usage or trends in ZIP code 76538. However, the average market rent for two-bedroom properties is typically between $500 - $749 per month. Given that the voucher amount is $867, it appears that vouchers could help bridge the gap between lower market rents and higher FMRs. Nonetheless, without detailed data on how many renters use vouchers and whether the voucher program is growing or shrinking, it's difficult to predict if vouchers will consistently cover the higher rents associated with the $411,363 home.
In summary, while the FMR of $1,110 may not fully cover the mortgage on a $411,363 home, housing vouchers could offer support. The rental demand at 15.3% is present but may not be robust enough for consistent occupancy. The data does not provide a complete picture to definitively address all concerns, but it does suggest that careful consideration of these factors is necessary before investing in this ZIP code.
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.