Location: Waco, TX | Metro: Killeen-Temple, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 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)
The rent math in ZIP 76561, part of the Waco, TX HUD Metro FMR Area, is nearly balanced but leans slightly against the landlord. The Fair Market Rent (FMR) set at $920 for the fiscal year 2024 is marginally below the Census ACS reported market rent of $948. This means that while the FMR provides a benchmark, it falls short of the actual market rate by $28 per month, which could impact profitability.
Acquisition in this area is reasonably affordable. The median home value stands at $254,677. However, with no data available on the average number of days on the market (DOM) or the percentage of homes requiring price cuts, landlords must proceed with caution. These missing metrics suggest potential challenges in acquiring properties at the listed median value, though the price itself remains within a manageable range for most investors.
Tenant demand is strong in ZIP 76561. With a total population of 996, the 18.2% renter share indicates a robust pool of potential tenants. This suggests that landlords can expect a steady stream of applicants, which is crucial for maintaining occupancy rates and ensuring a consistent cash flow.
Verdict: While the rent math is close, it slightly favors the tenant over the landlord due to the FMR being just under the market rent. Acquisition costs are reasonable, but without DOM and price-cut data, the ease of property purchase is uncertain. Tenant demand is solid, with a significant portion of the population likely seeking rental housing. Landlords should carefully evaluate individual property values and consider the slight disparity between FMR and market rent when setting their own rates to ensure profitability while remaining competitive.
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.