Location: Coleman County, TX | Metro: Brown County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
To determine if you should invest in ZIP code 76823 (Bangs, TX) for Section 8 properties, follow this decision tree based on the given data points:
1) Does FMR $970 (metro FY 2026) clear debt service on a $170,001 property?
No. The Fair Market Rent (FMR) of $970 does not cover the debt service on a property priced at $170,001. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this price point, the rent would likely be insufficient to meet these obligations, making it a risky investment without additional subsidies or rent supplements.
2) Is market rent $825 (Census ACS) above, at, or below FMR?
Below FMR. The market rent of $825 is below the FMR of $970. This indicates that the market rent is lower than what is considered fair for the area, suggesting potential under-rental in the market. However, for Section 8 tenants, the rent would still be capped at the FMR.
3) Are 22.6% renters + N/A-day days on market (DOM) enough demand?
It depends. With 22.6% of the population being renters, there is a moderate level of rental demand. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is short, indicating quick turnover, then the demand might be sufficient despite the lower percentage of renters. Conversely, if the DOM is long, it could suggest difficulties in finding tenants, even among those eligible for Section 8.
In conclusion, investing in ZIP 76823 for Section 8 properties is not advisable due to the FMR not covering the debt service on a $170,001 property. Even though the market rent is below the FMR, which is beneficial for Section 8 tenants, the rental demand is only moderately high. Without concrete data on DOM, it's challenging to predict the ease of finding tenants. Therefore, unless there are other factors compensating for the high debt service risk, such as low competition or unique property features, the recommendation is to avoid this ZIP code for Section 8 investments.
Data Sources: FMR data from HUD (2027). 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.