Location: Hill County, TX | Metro: Waco, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 76622 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1110, while the Census ACS data indicates that the market rent is currently $817. This represents a difference of $293, or approximately 36%.
Given that the FMR exceeds the market rent, properties in ZIP 76622 can be seen as attractive investments for landlords and small-portfolio investors looking to capitalize on the yield play offered by voucher tenants. The higher FMR allows landlords to charge more per unit compared to the open-market rate, thus increasing their rental income. With only 21.3% of residents being renters, competition for rental units is relatively low, making it easier for landlords to attract voucher tenants who are willing to pay up to the FMR.
The median home value in the area is $321,665, which suggests a moderate economic environment. However, the median income of $74,167 indicates that many residents might struggle to afford housing at market rates, further underscoring the importance of Section 8 vouchers in providing affordable options. Landlords can benefit from the guaranteed rental income provided by the voucher program, which is typically more stable and less risky than relying on non-subsidized tenants.
In summary, the gap between the FMR and the market rent in ZIP 76622 presents a clear opportunity for landlords to increase their rental yields through Section 8 participation. The economic context supports this strategy, as it aligns with the needs of a substantial portion of the population who rely on housing assistance.
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.