Section 8 Fair Market Rent (FMR) for ZIP 76621 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 76621 might raise several valid concerns regarding the feasibility of investing in properties here. Let's address these objections with the available data.

• Will FMR $1270 (zip FY 2024) cover the mortgage on a $306,786 home? The Fair Market Rent (FMR) of $1270 in ZIP 76621 for fiscal year 2024 is the average amount that a tenant can expect to pay. To determine if this will cover the mortgage on a $306,786 home, we need to calculate the monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $1470. This means that the FMR of $1270 falls short by about $200 per month. However, it's important to note that this calculation does not account for potential tax benefits, property appreciation, or rental increases over time. Landlords should also consider other income streams and cost-saving measures to bridge this gap.
• Is there enough renter demand at 11.9%? The 11.9% represents the percentage of households in ZIP 76621 that receive housing assistance. This figure indicates a relatively low level of demand for subsidized rentals compared to other areas. While this might seem concerning, it's crucial to understand that this statistic alone does not provide a complete picture of the overall rental demand. A more comprehensive analysis would require data on the total number of renters and the vacancy rate in the area. Nonetheless, the low percentage suggests that landlords should focus on attracting a broader range of tenants who might not rely solely on vouchers.
• Will vouchers keep pace with $1,360 market rents? The Housing Choice Voucher program aims to cover a significant portion of market rents, but whether it keeps up with the $1,360 market rent in ZIP 76621 depends on the specifics of the voucher policy and local adjustments. As of now, the FMR of $1270 is below the market rent, indicating that vouchers might not fully cover the cost. Landlords should be aware that they may need to accept lower rents or seek additional sources of income. It's also worth noting that voucher policies can change, so staying informed about local and federal updates is essential.

The data presents a mixed outlook for investing in ZIP 76621. While the FMR does not fully cover the mortgage on a median-priced home, there are still opportunities for landlords to manage costs and increase profitability through strategic planning and diversification of their tenant base. The low percentage of households receiving housing assistance implies a need to attract non-voucher tenants, which could be achieved by offering competitive rental terms and maintaining high-quality properties.

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.