Location: Waco, TX | Metro: Killeen-Temple, 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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $143,829 | 0.98% | C |
| 3BR | $1,840 | $245,402 | 0.75% | D |
| 4BR | $1,870 | $512,761 | 0.36% | F |
| 5BR | $2,169 | $859,247 | 0.25% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 76657, which includes McGregor, Texas, has been set at $1440 for fiscal year 2024. This figure represents the payment standard set by the U.S. Department of Housing and Urban Development (HUD) for Section 8 housing vouchers. It is important to note that this does not directly translate to the amount you will receive as rent; rather, it is the maximum amount HUD will pay towards a tenant's rent.
To provide context, the average rent for properties in this area, according to the Census Bureau's American Community Survey (ACS), is approximately $1,295. This means that the FMR is slightly higher than the typical market rate, potentially offering a better deal for landlords participating in the Section 8 program.
With an 18.1% share of renters in the area, there is a consistent demand for affordable housing options. The FMR can help ensure that you attract tenants who qualify for the Section 8 program and are able to afford living in your property. However, the demand is not overwhelming, so you should be prepared for a moderate competition among landlords.
When considering purchasing a property in this area for a Section 8 rental, the median home value is around $332,281. This figure gives you a benchmark for the acquisition cost of a property. It is crucial to factor in the FMR when evaluating if the potential income from a Section 8 tenant will cover your mortgage payments, maintenance costs, and other expenses associated with owning and managing a rental property.
Before proceeding with your first Section 8 rental in ZIP 76657, verify that your property meets all the required safety and habitability standards. HUD conducts regular inspections to ensure that Section 8 properties are safe and in good condition. Failure to meet these standards can result in penalties or even removal from the program. Ensuring compliance upfront will save you time and money in the long run.
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.