Location: Falls County, 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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $232,664 | 0.7% | D |
| 4BR | $1,960 | $279,053 | 0.7% | D |
U.S. Census Bureau data (2024)
A skeptical investor might raise several concerns about investing in ZIP 76579, specifically regarding the Fair Market Rent (FMR), rental demand, and the ability of vouchers to keep pace with market rents.
Will FMR $1110 (zip FY 2024) cover the mortgage on a $257,339 home?
The FMR of $1110 may not fully cover the mortgage payments on a home valued at $257,339. According to recent data, the median home value in ZIP 76579 is around $257,000. Assuming a typical down payment of 20%, the principal amount borrowed would be approximately $205,871. With current average mortgage rates, the monthly payment could range from $900 to $1200, depending on the term and interest rate. Therefore, the FMR might only partially cover the mortgage costs, leaving a gap that must be addressed by either higher rents or additional income sources.
Is there enough renter demand at 34.1%?
The rental demand at 34.1% indicates a moderate level of interest from potential renters. However, it is essential to understand the dynamics of the local rental market. While the percentage suggests that a significant portion of the population is willing to rent, the actual number of available units and competition from other landlords will impact the ease of filling vacancies. To mitigate risk, investors should consider the demographic makeup and economic stability of the area to ensure a steady flow of tenants.
Will vouchers keep pace with $1,768 market rents?
The data does not provide specific information on the average voucher amount in ZIP 76579. However, given the market rent of $1,768, it is crucial to assess whether voucher amounts are sufficient to cover these costs. Vouchers are often adjusted annually based on HUD guidelines, but they may not always align with local market conditions. Investors should research the local HUD office and recent adjustments to determine if vouchers will adequately support rental income.
In conclusion, while ZIP 76579 presents opportunities for investment, careful consideration of the financial and market factors is necessary. Addressing the concerns raised above requires thorough analysis and possibly diversification of income streams to ensure profitability.
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.