Location: Hill County, TX | Metro: Hill County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The median home value in ZIP 76628, which encompasses parts of Hill County, TX metro, stands at $80,000. This figure is notably lower than the state average, indicating that the housing market in this area is relatively affordable. The Federal Housing Administration (HUD) Fair Market Rent (FMR) for the region, set at $1,100 for fiscal year 2026, provides a benchmark for Section 8 investors.
Despite the low median home value, the HUD FMR of $1,100 does not align well with the actual market rent in ZIP 76628. According to recent listings, the market rent for the area is generally higher than the FMR, suggesting that voucher tenants would only cashflow marginally at best, and likely only in premium units that are priced below market rates. This implies that landlords and small-portfolio investors should expect to carefully select properties to ensure profitability.
The rent-to-price ratio, derived from the median home value and the HUD FMR, indicates a ratio of approximately 13.75%. This suggests that the rental market is somewhat disconnected from the home value market, potentially due to the limited supply of rental units or the nature of the housing stock in the area. Given the lack of specific data on days on market (DOM) and price-cut shares, it's difficult to draw conclusions about the rent-vs-buy dynamics. However, the low median home value and high FMR suggest that the rental market may be more attractive to investors than the home purchase market.
The strongest investor angle in ZIP 76628 appears to be stability. With a low median home value and a consistent HUD FMR, investors can rely on predictable returns from their rental properties, even if the cashflow is modest. Stability in the rental market can provide a reliable source of income, making it an appealing option for those looking to invest in the area.
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.