Location: Killeen-Temple, TX | Metro: Killeen-Temple, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 76544 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1250, while the Census American Community Survey (ACS) reports the market rent at $1405. This discrepancy amounts to a difference of $155, or approximately 12.4%, indicating that the market rent exceeds the FMR.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords and small-portfolio investors. Given that the FMR is lower than the market rent, landlords who accept Section 8 vouchers will be receiving a payment that is $155 less per month than what they could potentially earn from market-rate tenants. This can impact profitability and cash flow, especially considering the high percentage of renters in the area—99.8% of residents in ZIP 76544 are renters, suggesting a robust demand for rental properties but also a competitive market.
Despite the lower FMR, there are strategic advantages to accepting Section 8 vouchers. The stability and reliability of voucher payments can provide a consistent revenue stream, which is particularly beneficial in an environment where the median household income is $62,846. This income level suggests that many potential tenants might struggle to afford market rates, making Section 8 vouchers a viable option for securing tenancy. However, it's important to note that the lower FMR does not account for the full market value, and landlords must carefully weigh the trade-offs between accepting vouchers and renting at market rates.
In conclusion, the gap between FMR and market rent in ZIP 76544 presents both challenges and opportunities for landlords. While the FMR is $1250, the market rent stands at $1405, a difference of $155 or 12.4%. This analysis underscores the importance of understanding local rental dynamics and the financial implications of accepting Section 8 vouchers.
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.