Location: Waco, 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 | $880 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,010 | $93,749 | 1.08% | B |
| 2BR | $1,270 | $121,894 | 1.04% | B |
| 3BR | $1,660 | $150,603 | 1.1% | B |
| 4BR | $1,670 | $216,960 | 0.77% | D |
U.S. Census Bureau data (2024)
ZIP 76707 in Waco, TX, falls within the Waco, TX HUD Metro FMR Area. This area presents a strategic opportunity for landlords and small-portfolio investors looking to create a balanced investment portfolio. Specifically, ZIP 76707 serves as a cash-flow anchor. The Fair Market Rent (FMR) for a one-bedroom apartment in ZIP 76707 for fiscal year 2024 is set at $1230, while the market rent is estimated at $1,432. This spread indicates that landlords can rely on a steady stream of rental income that is guaranteed to be close to the market rate but with the added security of federal subsidies.
The median home value in ZIP 76707 is $140,264, which suggests that property values are relatively stable and not subject to significant volatility. This stability supports the role of ZIP 76707 as a cash-flow anchor, as it reduces the risk of sudden decreases in property value that could negatively impact an investor's overall financial health. Moreover, the low price-cut share of 0.3% and the absence of data regarding days on market (DOM) indicate that the housing market is robust and that properties are likely to be rented quickly without the need for substantial discounts.
The renter share in ZIP 76707 is 41.1%, which is higher than the national average, suggesting a strong demand for rental properties. Additionally, the median income of $40,443 aligns well with the FMR, making it feasible for residents to participate in the Section 8 program. Landlords should note that the FMR is designed to ensure that tenants pay no more than 30% of their income towards rent, thus providing a reliable tenant base with the financial means to maintain consistent rental payments.
In conclusion, ZIP 76707 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Its FMR closely mirrors the market rent, ensuring steady income, while its stable home values and high renter share provide a secure foundation for long-term investment success.
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.