Location: Killeen-Temple, 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 | $1,120 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $317,653 | 0.45% | F |
| 3BR | $1,810 | $443,603 | 0.41% | F |
| 4BR | $2,080 | $545,497 | 0.38% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 76571, Salado, TX, within Bell County, are governed by the Specific Area Fair Market Rent (SAFMR) for the region. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1,470. This figure is specifically tailored to reflect the rental costs within this ZIP code, providing a precise benchmark for landlords.
Contrastingly, the local market rent for a similar two-bedroom unit, according to the Census American Community Survey (ACS), averages at $1,188. This lower figure represents the typical rent charged for comparable units in the area without the influence of Section 8 subsidies.
When a landlord enters into a Section 8 agreement, they receive a subsidy from the government to cover the difference between the market rent and the tenant's portion of the rent. The tenant is responsible for paying approximately 30% of their adjusted income towards rent. If the tenant's income is $1,500 per month, their payment would be around $450. The remaining amount is covered by the Section 8 voucher, which aims to ensure the total rent does not exceed the SAFMR of $1,470.
In addition to the base rent, the voucher also includes an allowance for utilities, which can vary but is typically around $300-$400 per month. Therefore, if we assume a utility allowance of $350, the total reimbursement a landlord could expect would be the sum of the tenant's payment ($450) and the voucher's base rent subsidy plus utilities ($1,120), totaling $1,570.
However, it's important to note that the actual reimbursement may not reach the full SAFMR of $1,470 if the local market rent is lower. In ZIP 76571, where the average market rent is $1,188, the voucher will only cover up to this amount, plus the utility allowance. Thus, the total reimbursement would be capped at $1,538 ($1,188 market rent + $350 utility allowance).
This means that for a two-bedroom apartment in ZIP 76571, there would be a surplus for the landlord if the local market rent is below the SAFMR. Specifically, the landlord would receive a reimbursement that exceeds the local market rent by $350 per month, assuming the utility allowance is $350. This surplus provides an incentive for landlords to participate in the Section 8 program even when local rents are lower than the SAFMR.
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.