Section 8 Fair Market Rent (FMR) for ZIP 76832 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to purchase a property in ZIP code 76832 for Section 8 investment, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1,030 cover the debt service on a property?

If the debt service on your potential property is higher than $1,030 per month, then the answer is No. The FMR is the maximum amount that HUD will pay for rental housing in a given area, and if it does not cover your monthly mortgage payments and other costs, investing in this ZIP code would not be financially viable.

2) How does the market rent of $975 compare to the FMR?

The market rent is below the FMR, indicating that properties in ZIP 76832 are generally less expensive than what HUD is willing to pay under the Section 8 program. This means that landlords could potentially receive higher rents from Section 8 tenants compared to market rates. However, this also suggests that there might be competition from non-Section 8 tenants willing to pay less than the FMR.

3) Is the demand sufficient with 21.2% of residents being renters and an unspecified number of days on the market (DOM)?

With 21.2% of the population renting, there is a notable but not overwhelming demand for rental properties. The demand level depends on the DOM figure; if the DOM is low, it indicates strong demand and quicker turnover, which is positive. Conversely, a high DOM suggests weaker demand or oversupply, making it harder to find tenants. Without a specific DOM figure, the answer is It Depends.

Decision Outcome:

• No: If the FMR does not cover your debt service or if the DOM is high, indicating weak demand.
• Yes: If the FMR comfortably covers your debt service and the DOM is low, suggesting strong demand.
• It Depends: If the FMR barely covers your debt service or if you lack sufficient data on the DOM.

Note: The analysis assumes that the unspecified DOM is a critical piece of information that must be determined before making a final decision. A comprehensive evaluation should include a detailed examination of local rental trends and vacancy rates.

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.