Location: Hill County, TX | Metro: Hill 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 | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $99,384 | 0.89% | C |
| 2BR | $1,110 | $159,665 | 0.7% | D |
| 3BR | $1,540 | $280,460 | 0.55% | F |
| 4BR | $1,750 | $363,817 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,000 for ZIP 76692 (Whitney, TX) in fiscal year 2026 will be sufficient to cover the mortgage on a home priced at $219,915. According to recent data, the median home value in ZIP 76692 is approximately $215,959, and the median gross rent is around $850. To accurately assess the mortgage coverage, one must consider current mortgage rates. As of now, these rates vary widely depending on the type of mortgage and the borrower’s credit score.
The investor could also argue that the rental demand at 18.1% seems low, indicating potential challenges in finding tenants. However, the percentage of residents living in poverty in Whitney, TX is 23.9%, which is higher than the national average. This suggests that there is a significant portion of the population seeking affordable housing options, aligning with the rental demand observed. Additionally, the median household income in ZIP 76692 is $57,015 annually, lower than the U.S. average of $69,021, which supports the idea that there is a strong need for affordable rental properties.
A final concern might be whether rental assistance vouchers will keep pace with the market rents of $877. While the FMR set at $1,000 provides some assurance, it's critical to note that actual voucher amounts can fluctuate based on local housing costs and federal guidelines. The data does not provide specific information on the rate of increase for vouchers in this area, but historically, they tend to adjust over time to reflect changes in market conditions.
To summarize, the FMR of $1,000 should reasonably cover the mortgage on a home priced at $219,915, considering typical mortgage rates. Despite the relatively low rental demand percentage, the high poverty rate and lower-than-average median income suggest a strong market for affordable rentals. Lastly, while vouchers might not fully cover the current market rent of $877, historical trends indicate they will likely adjust to better meet needs over time.
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.