Location: Waco, TX | Metro: Waco, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
When considering whether to purchase properties in ZIP code 76714 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1270 cover debt service on a property?
No data is available to determine if the FMR can cover the debt service on a property in ZIP 76714. Without knowing the average mortgage payment, property taxes, insurance, and other expenses, it's impossible to make a definitive statement.
2) Is the market rent above, at, or below the FMR?
No information is provided regarding the current market rent in ZIP 76714. This is critical because if market rents are significantly higher than the FMR, landlords might struggle to attract tenants willing to pay the lower Section 8 rates. Conversely, if market rents are at or below the FMR, then Section 8 could be a viable option.
3) Are there enough renters and days on the market (DOM) to meet demand?
The percentage of renters and the DOM figures are not given for ZIP 76714. These metrics are essential to gauge the rental market's health. A high percentage of renters combined with a low DOM suggests strong demand. However, without these specifics, we cannot assess the viability of the rental market for Section 8.
In conclusion, purchasing properties in ZIP 76714 for Section 8 investment requires additional data points. Specifically, you need to know the debt service costs of properties, the current market rent levels, and the percentage of renters along with the DOM figures. Once these details are known, you can make an informed decision based on the criteria outlined above.
Data Sources: FMR data from HUD (2027).
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.