Location: Waco, 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 | $920 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,650 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,230 | $196,572 | 0.63% | D |
| 3BR | $1,650 | $290,498 | 0.57% | F |
| 4BR | $1,870 | $481,361 | 0.39% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 76557 in Moody, TX, must be carefully considered. Firstly, tenant turnover could be a significant issue due to the disparity between the market rent of $1,154 and the Fair Market Rent (FMR) of $1,060 for FY 2024. This difference may lead to tenants seeking more affordable housing options outside the Section 8 program, increasing turnover rates.
Vacancy exposure is another concern, especially since there is no available data on the number of days on market (DOM) for properties in this area. This lack of information makes it difficult to predict how long a property might remain vacant, which can impact cash flow and overall profitability.
Deferred maintenance is also a risk factor, particularly when considering the typical home value of $325,065 and the median income of $86,056. The relatively high home values compared to median incomes suggest that many homeowners may struggle to keep up with necessary repairs and upgrades, leading to higher maintenance costs for landlords.
However, these risks are offset by the high concentration of renters in the area, with 19.0% of the population being renters. High renter density typically correlates with greater demand for rental properties, including those participating in the Section 8 program. This increased demand can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.