Location: Bosque County, TX | Metro: Bosque 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 | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $297,739 | 0.46% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 76671 might raise several valid concerns regarding the feasibility of investing in the area, especially when considering the dynamics of the housing market and the potential returns from Section 8 properties.
The first objection is whether the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 will be sufficient to cover the mortgage on a home priced at $213,806. This concern stems from the need to ensure that rental income can sustain the financial obligations of property ownership. While the FMR figure is a good starting point, it does not directly translate to a guarantee of mortgage coverage. However, the FMR does provide a benchmark for what is considered reasonable rent within the area. To determine if the FMR will indeed cover the mortgage, an investor would need to calculate the monthly mortgage payment based on current interest rates and loan terms. Given that the FMR is set annually to reflect changes in the local housing market, it generally aligns with the average rent levels, thus offering a fair indication of the potential rental income.
The second concern revolves around the level of renter demand, which stands at 15.5% in ZIP 76671. This percentage represents the share of households renting rather than owning their homes. At first glance, 15.5% may seem low, suggesting a potentially smaller pool of tenants. However, the significance of this number depends on the overall population and the size of the housing stock in the area. A higher percentage of renters would certainly indicate greater demand, but even at 15.5%, there could still be a viable market, particularly if the investor focuses on properties that appeal to the specific demographics most likely to seek rentals. Moreover, the presence of Section 8 properties could attract a segment of the population that relies on government assistance for housing, thereby increasing the likelihood of finding suitable tenants.
The third issue pertains to the ability of Housing Choice Vouchers to keep up with market rents, currently estimated at $940. The effectiveness of vouchers in covering these rents is crucial for investors considering Section 8 properties. The voucher program aims to ensure that families do not spend more than 30% of their income on housing, but the actual amount paid out by the voucher can vary. In ZIP 76671, the voucher amount might not fully cover the market rent, requiring tenants to contribute additional funds. Investors should monitor local trends in both voucher payouts and market rents to make informed decisions. Additionally, understanding the eligibility criteria and waiting times for the voucher program can help gauge its impact on the local rental market.
In summary, while the data provides insights into the financial viability of investing in ZIP 76671, it is important to conduct further analysis and consider other factors such as local economic conditions, population growth, and competition in the rental market. The FMR offers a baseline for rental expectations, the renter demand percentage indicates the size of the tenant pool, and the voucher system's capacity to meet market rents affects the attractiveness of the investment. Each of these points must be carefully evaluated to ensure a successful investment strategy.
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.