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 | $870 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $186,747 | 0.67% | D |
| 3BR | $1,630 | $240,127 | 0.68% | D |
| 4BR | $1,640 | $391,883 | 0.42% | F |
| 5BR | $1,902 | $660,619 | 0.29% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP 76710, Waco, TX, are significant and must be carefully considered. First, tenant turnover could be a major issue due to the difference between the market rent of $1,239 and the Fair Market Rent (FMR) set at $1,170 for FY 2024. Landlords might face challenges in attracting tenants who can afford the market rate but qualify for Section 8 vouchers, leading to higher vacancy rates.
Vacancy exposure is another concern, with an average Days on Market (DOM) of 61 days indicating that properties may remain vacant longer than desired. This extended period without rental income can strain cash flow and reduce overall profitability. Additionally, the typical home value of $247,097 combined with a median income of $58,186 suggests that many homeowners may have deferred maintenance on their properties, which could increase repair costs and management time for landlords.
However, these risks are offset by the high renter share in the area, which stands at 52.7%. High renter density typically correlates with greater demand for rental properties, including those that accept Section 8 vouchers. This increased demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 76710 is moderate.
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.