Location: Limestone County, TX | Metro: Freestone County, TX
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 | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $183,057 | 0.77% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP code 76667 for Section 8 investments must follow a structured decision-making process. The first step is to evaluate whether the Fair Market Rent (FMR) of $990 can cover the debt service on a property valued at $128,420. In this case, the FMR does not sufficiently clear the debt service, indicating a negative cash flow scenario if solely relying on Section 8 vouchers. This is a critical gating question; if the answer is no, the investment becomes less attractive unless other factors significantly offset this shortfall.
The second question to address is how the market rent compares to the FMR. Here, the market rent is listed at $958, which is slightly below the FMR of $990. This suggests that while Section 8 tenants might pay close to the market rate, landlords could face challenges renting units to non-Section 8 tenants at the FMR. However, the proximity of market rent to FMR means that Section 8 properties are relatively competitive, potentially mitigating some risk.
The third consideration is demand. With 33.1% of residents being renters and the days on market (DOM) information marked as 'N/A', we can infer that there is a reasonable level of rental demand. However, without specific DOM data, it's challenging to quantify the speed at which properties are rented out. Given the rental percentage alone, the demand appears sufficient, but the lack of DOM data introduces uncertainty into the analysis.
If the landlord can secure additional sources of income or subsidies, the answer to the initial question shifts towards yes. However, with only the provided figures, the answer is no.
Market rent being below FMR indicates that Section 8 tenants will be competitive, but it also means landlords may struggle to rent to higher-paying tenants. This situation leans towards it depends, largely on the landlord's tolerance for lower rents.
The demand analysis suggests sufficient interest among potential renters. However, the missing DOM data means that while demand seems adequate, the answer is it depends on how quickly units can be filled.
In conclusion, based on the provided data, a landlord should consider carefully before investing in ZIP 76667 for Section 8 properties. The primary concern is the inability of FMR to cover debt service on average-priced properties, coupled with the slight disparity between market rent and FMR, and the incomplete picture of rental demand due to missing DOM data.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.