Location: Hill County, TX | Metro: Hill County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,870 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 76627 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,290, while the Census ACS reports the average market rent at $800. This creates a gap of $490, or approximately 38%, between what the government deems fair and what landlords can currently charge in the open market.
The FMR exceeds the market rent, which makes ZIP 76627 a prime location for landlords seeking to maximize their yields through voucher tenants. The government's willingness to pay up to $1,290 ensures that landlords can command rents above the current market rate without the risk of vacancy. This dynamic is particularly compelling given that only 9.2% of residents are renters, indicating a relatively low supply of rental units compared to demand.
The median home value in ZIP 76627 stands at $298,913, suggesting a middle-class neighborhood where the median income is $70,375. These figures indicate that while homeownership is prevalent, the income levels support the viability of the Section 8 program. Landlords can expect a steady stream of qualified tenants who are able to cover a portion of the rent, with the remainder subsidized by the government.
However, it is important to note that accepting voucher tenants comes with its own set of considerations. While the higher rent through vouchers increases yield, landlords must also be prepared to navigate the administrative requirements and potential delays associated with the housing voucher program. Additionally, the long-term financial health of the property should be considered, as voucher rents might not keep pace with inflation or rising maintenance costs.
In summary, the gap between FMR and market rent in ZIP 76627 presents an opportunity for landlords to enhance their investment yields by participating in the Section 8 program. This is especially true in a context where rental supply is limited and median incomes are sufficient to support the program's structure. However, the decision to accept voucher tenants should be weighed against the administrative burdens and potential risks involved.
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.