Location: Bosque County, TX | Metro: Waco, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $256,245 | 0.75% | D |
| 3BR | $2,500 | $358,415 | 0.7% | D |
| 4BR | $2,520 | $546,732 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math for ZIP 76633 does not work in favor of landlords who aim to maximize their income. The Fair Market Rent (FMR) set at $1280 for the fiscal year 2024 is significantly lower than the market rent of $1,699 reported by the Census ACS. This discrepancy means that landlords must either accept a lower rent, which is closer to the FMR, or risk higher vacancy rates if they charge market rates.
Acquisition in ZIP 76633 is moderately affordable, with a median home value of $406,870. However, the lack of data on days on market (DOM) and the fact that only 0.2% of homes have experienced a price cut suggests that the housing market may be somewhat stable, but it also indicates limited recent sales activity. This stability can be beneficial for long-term investments but may not offer immediate liquidity or quick returns.
Tenant demand in ZIP 76633 is relatively low. With a total population of 6,268 and only 10.0% of residents being renters, the pool of potential tenants is narrow. This low renter share could make it challenging to fill vacancies quickly, especially if landlords are charging close to the market rate rather than the FMR.
Verdict: ZIP 76633 presents a challenging environment for landlords and small-portfolio investors. The significant gap between the FMR and market rent makes it difficult to balance profitability with occupancy rates. Acquisition is affordable, but the limited sales activity and low renter share suggest that finding and retaining tenants will be a persistent challenge. Landlords should carefully consider these factors before investing in properties in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.