Location: Hill County, TX | Metro: Waco, 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 | $800 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $162,242 | 0.71% | D |
| 3BR | $1,500 | $296,962 | 0.51% | F |
| 4BR | $1,550 | $463,615 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP 76691 is a part of the larger Denton County area in Texas, characterized by a suburban landscape with a mix of residential and commercial developments. The neighborhood has a total population of 6,661, with 20.3% being renters. This indicates a community that is predominantly owner-occupied, suggesting a stable environment where residents have a vested interest in maintaining property values and quality. The median household income in this ZIP code stands at $85,694, which is above the national average, reflecting a middle to upper-middle-class demographic. The median home value of $296,525 further supports this, showing that the area is well-established and financially sound.
Turning to the economic realities of renting in ZIP 76691, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,190. This is notably higher than the reported market rent of $1,064, based on recent Census ACS data. The discrepancy between the FMR and the actual market rent suggests an opportunity for landlords and investors who can leverage the higher voucher limits to attract tenants, especially those who qualify for Section 8 assistance. However, it also implies that there might be some challenges in finding properties that meet the necessary standards for voucher acceptance at the current market rent levels.
Considering these factors, ZIP 76691 is best suited for a hands-on value-add buyer rather than a hands-off voucher operator. The potential exists to improve properties to meet Section 8 requirements and capitalize on the higher FMR. For those willing to invest in renovations and management, this ZIP code offers a solid foundation for generating returns above typical market rents. Conversely, a hands-off approach might result in underutilizing the full rental potential of properties due to the gap between market rents and FMR.
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.