Location: Falls 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 | $1,090 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $280,377 | 0.56% | F |
| 3BR | $2,060 | $310,331 | 0.66% | D |
| 4BR | $2,110 | $401,692 | 0.53% | F |
| 5BR | $2,448 | $462,960 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Lorena, TX (ZIP 76655) might raise several valid concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these points directly using available data.
Will FMR $1480 (zip FY 2024) cover the mortgage on a $343,655 home?
The Fair Market Rent (FMR) for ZIP 76655 in fiscal year 2024 is set at $1480 per month. To determine if this will sufficiently cover the mortgage, we need to calculate the potential monthly mortgage payment based on typical lending rates. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the principal and interest payment on a $343,655 home would be approximately $1850 per month. This means that the FMR of $1480 would fall short by about $370 each month. Therefore, it is unlikely that the FMR alone will cover the mortgage without additional income sources or subsidies.
Is there enough renter demand at 14.9%?
The percentage of renter-occupied units in ZIP 76655 is 14.9%. This figure suggests that the demand for rental housing is relatively low compared to other areas. However, the percentage does not tell the whole story. To get a clearer picture, we need to know the total number of households in the area and how many are potentially eligible for Section 8. The current data does not provide these specifics, so while the demand appears modest, it could still be sufficient depending on the overall population size and the number of individuals seeking affordable housing.
Will vouchers keep pace with $2,300 market rents?
The market rent for ZIP 76655 is reported to be around $2,300 per month. Given that the FMR is significantly lower at $1480, it is evident that vouchers will not cover the full market rent. Landlords must decide whether they can accept a lower rent or find ways to reduce operating costs to make the investment viable. While the voucher system provides a steady stream of tenants, it comes with the trade-off of accepting a lower rent amount compared to market rates.
In conclusion, investing in ZIP 76655 under the Section 8 program requires careful consideration of the financial implications. The FMR is unlikely to fully cover mortgage payments on homes priced at $343,655, and the voucher amount will not match the higher market rents. Despite these challenges, the investment may still be worthwhile if the demand for affordable housing meets expectations and operational efficiencies can be achieved.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.