Location: Menard County, TX | Metro: McCulloch County, TX
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 | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $183,362 | 0.69% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 76825, located in Menard County, TX metro, reveals a favorable environment for those seeking stable returns. The HUD Fair Market Rent (FMR) for the area stands at $1,040 for the fiscal year 2026, which is significantly higher than the average market rent reported by the Census ACS at $794. This discrepancy means that voucher tenants will typically cashflow at the FMR level, providing a consistent positive cash flow scenario for landlords.
To further understand the investment potential, consider the median home value in the area, which is $139,035. Using this figure, we can derive the rent-to-price ratio. With an average market rent of $794, the annual rent would be approximately $9,528. Dividing this by the median home value gives us a rent-to-price ratio of about 6.85%, indicating that rental income is relatively low compared to property values. However, this ratio does not fully capture the benefits of the Section 8 program, where the guaranteed payment of $1,040 per month makes the investment more attractive.
The data shows a median Days on Market (DOM) of N/A, suggesting limited information on how long homes typically stay on the market before selling. Additionally, the price-cut share stands at 0.1%, indicating that sellers rarely need to reduce their asking prices to attract buyers. While these figures do not directly impact the rent-vs-buy dynamics, they do suggest a stable housing market, which can provide peace of mind for investors.
In conclusion, the strongest investor angle in ZIP 76825 is cashflow. The higher HUD FMR compared to the market rent ensures that voucher tenants will consistently cover the costs of ownership and provide additional income, making it an ideal location for Section 8 landlords and small-portfolio investors.
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.