Location: Falls County, TX | Metro: Falls County, 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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $143,468 | 0.98% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 76661 provides a clear picture of potential investment returns based on the Fair Market Rent (FMR) and market rent figures. For a two-bedroom property, the annualized FMR set by HUD for FY 2024 is $910 per month, while the Census ACS reports a market rent of $687 per month. Given these figures and a median home value of $92,880, we can derive the implied gross yields for both scenarios.
Using the FMR, the annual rental income would be $10,920 ($910 x 12 months). This translates into an implied gross yield of approximately 11.76% when divided by the median home value ($10,920 / $92,880 = 0.1176). On the other hand, using the market rent figure, the annual rental income would be $8,244 ($687 x 12 months), leading to an implied gross yield of about 8.88% ($8,244 / $92,880 = 0.0888).
The higher gross yield based on the FMR scenario suggests a potentially more lucrative investment for landlords participating in the Section 8 program. However, it's important to consider the broader market context. With a renter density of 33.0%, the demand for rental properties is moderate, indicating that landlords might face competition from homeowners looking to rent out their properties at lower rates.
The N/A-day DOM (Days on Market) data point implies that there is limited information available regarding how quickly properties are rented in this area, which could affect the reliability of the market rent figure. Nevertheless, the disparity between the FMR and market rent indicates that the actual yield may fall somewhere between the two extremes, depending on the specific terms of the Section 8 contract and the landlord's ability to secure tenants willing to pay closer to the FMR rate.
In conclusion, while the FMR-based gross yield of 11.76% is more attractive, the market rent-based gross yield of 8.88% reflects the reality faced by many landlords. Investors should weigh these figures against their risk tolerance and investment goals, considering the possibility of achieving a yield closer to the FMR if they can effectively manage their properties within the Section 8 program.
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.