Location: Hamilton County, TX | Metro: Bosque County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 76637, located in Hamilton County within the TX metro area, presents a unique opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the region, set at $970 for fiscal year 2026, slightly exceeds the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $943.
Voucher tenants in this area will cashflow at the HUD FMR, meaning landlords can expect a positive cashflow when renting to Section 8 participants at the FMR rate. This positive cashflow is marginal but consistent, making it an attractive option for those looking to secure steady rental income without the risk of vacancy. The slight premium over the market rent suggests that landlords may need to offer competitive amenities or unit quality to attract these tenants effectively.
To further analyze the investment potential, consider the median home value in ZIP 76637, which is $323,191. Using this figure, we can derive a rent-to-price ratio of approximately 0.3%, indicating that the rental income generated from a property at the market rent level would be relatively low compared to the property's purchase price. However, this ratio does not account for the higher potential rental rates available through the Section 8 program.
Note that the data on median Days on Market (DOM) and the percentage of homes that experience price cuts is not available. Despite this, the rent-vs-buy dynamics still matter, as they help determine whether rental properties or owned homes are more financially advantageous in the current market environment. In ZIP 76637, the slightly elevated FMR relative to market rent makes rental properties more appealing to potential buyers who qualify for Section 8 assistance.
The strongest angle for investors in this market is stability. With a guaranteed tenant base through the Section 8 program and a positive cashflow margin, landlords can expect a reliable source of income without the volatility often associated with other types of investments. Additionally, the positive cashflow ensures that landlords can cover maintenance costs and property taxes, maintaining the long-term viability of their investment.
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.