Location: Hill County, TX | Metro: Hill County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,090 in ZIP 76676 will cover the mortgage on a home priced at $219,134. According to recent real estate profiles, the average home price in ZIP 76676 is $357,178, which is higher than the home price in question. However, the average mortgage rate for ZIP 76676 can vary. A typical 30-year fixed-rate mortgage might be around 5%, resulting in a monthly payment of approximately $1,140 for a $219,134 home. This is close to the FMR but slightly above it, indicating that the FMR alone may not fully cover the mortgage without additional income sources.
The second objection could be regarding the renter demand at 10.3%. While this figure seems low, it's important to consider the context. ZIP 76676 has a slightly less than average percentage of vacancies, suggesting that there is a steady demand for rental properties. The majority of households in this area are either owned or have a mortgage, indicating a mix of homeowners and renters. Rental prices for a two-bedroom unit typically range from $500 to $749 per month, which suggests that the rental market is relatively stable and affordable. However, the exact percentage of 10.3% does not provide a complete picture of the overall demand for rental properties in the area.
The final concern might be whether housing vouchers will keep pace with market rents of $900. Unfortunately, the data does not provide a direct answer to this question. The voucher utilization rate is an indicator of how effectively the Public Housing Agency (PHA) is using its vouchers, but it does not directly correlate with the ability to cover market rents. Typically, voucher amounts can lag behind market rents, especially in areas with rising costs. To ensure that vouchers keep up with market rents, landlords and investors should monitor local PHA announcements and adjustments to voucher amounts.
In summary, while the FMR of $1,090 is near the monthly mortgage payment of $1,140, it may not fully cover the mortgage. Renter demand at 10.3% appears to be stable but requires further investigation. Lastly, the ability of vouchers to keep pace with market rents of $900 remains uncertain and should be monitored closely.
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.