Section 8 Fair Market Rent (FMR) for ZIP 76665 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor might raise several concerns about investing in ZIP code 76665. Here are three key objections, along with the relevant data to address them.

• Will Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a $268,889 home? According to the data, the average gross rent in ZIP 76665 is $628, which is lower than the FMR. However, the FMR does not guarantee coverage of the mortgage. To determine if it will cover the mortgage, one must consider the interest rate and the terms of the loan. At a conservative estimate, a monthly mortgage payment for a $268,889 home could be around $1,200-$1,500 depending on the interest rate and down payment. Thus, the FMR alone might not fully cover the mortgage payments, but it can still be a significant portion of the total cost.
• Is there enough renter demand at 42.0%? The data indicates that 28% of residents are renters, which is slightly below the 42% threshold mentioned. This suggests that while there is a substantial number of renters, the demand may not be as high as some investors might prefer. However, with a total population of 2,390, there are still approximately 670 potential renters. Given the size of the ZIP code, this number represents a reasonable pool of tenants.
• Will vouchers keep pace with $646 market rents? While the data does not provide specific information on voucher payments, the FMR of $970 suggests that the government aims to support housing affordability up to this level. If voucher payments align with the FMR, they should cover the market rent of $646 comfortably. However, the actual amount of voucher payments can vary based on local policies and funding availability, so further investigation is necessary to confirm this.

In summary, ZIP code 76665 presents a mix of opportunities and challenges for investors. The FMR provides a good starting point for rental pricing, but additional factors such as mortgage costs and local renter demographics must also be considered.

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.