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 | $1,070 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $125,602 | 1.22% | A |
| 3BR | $2,000 | $153,980 | 1.3% | A |
| 4BR | $2,010 | $201,120 | 1% | C |
U.S. Census Bureau data (2024)
The classification of ZIP 76711 in Waco, TX, reveals a balance between yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,550, which is higher than the market rent of $1,291. This indicates a potential for above-average rental yields, especially when compared against the median home value of $137,114. Landlords can expect to generate a higher return on investment per unit rented out.
Stability is assessed through the percentage of renters, household income, and days on market (DOM). With 48.1% of residents being renters, there is a significant demand for rental properties. However, the lack of data on DOM suggests that while there is a consistent need for housing, the exact turnover rate remains unclear. The average household income in the area is $53,185, providing insight into the financial capacity of potential tenants. This figure is relatively modest, indicating that while there is a steady flow of potential renters, they may be more sensitive to economic downturns.
In summary, ZIP 76711 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher FMR compared to market rent supports a solid yield, but the moderate income levels and significant renter population suggest a market that offers reliable returns rather than speculative gains. For small-portfolio investors and landlords looking for consistent cash flow with a reasonable return, this ZIP code presents a viable option.
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.