Location: Falls County, TX | Metro: Falls County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 76632 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For ZIP 76632, the FMR for fiscal year 2024 is $1360. However, based on recent data, the median gross rent for ZIP 76632 is $836, indicating that the FMR is significantly higher than the market rent.
The gap between the FMR and the market rent is $524, which is a 62.6% increase over the actual market rent. This means that landlords accepting Section 8 vouchers in ZIP 76632 can potentially earn a higher yield compared to renting at market rates. The reason for this yield play is that voucher tenants are guaranteed a certain level of rental income by the government, which is pegged to the FMR rather than the local market conditions.
Given the context of ZIP 76632, where 19.5% of the population are renters and the median household income is $76,193, landlords should consider the benefits of accepting Section 8 vouchers. Despite the lower median home value of $156,700, the opportunity to receive a guaranteed rent amount that exceeds the local market rate makes it a viable strategy for increasing rental yields.
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.