Location: Coleman County, TX | Metro: Coleman 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 |
|---|---|---|---|---|
| 2BR | $1,060 | $86,661 | 1.22% | A |
| 3BR | $1,260 | $152,503 | 0.83% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 76834, which encompasses Coleman, TX, in Coleman County, operate under a specific framework defined by federal guidelines. For fiscal year 2026, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,040. This figure represents the maximum amount that the government will reimburse landlords for renting out a two-bedroom unit to tenants who participate in the Section 8 Housing Choice Voucher program.
In contrast, the local market rent for a similar two-bedroom apartment in Coleman, as reported by the Census Bureau's American Community Survey, averages around $708. This discrepancy between the SAFMR and the actual market rent can influence a landlord's decision to participate in the program.
A voucher payment typically covers the difference between the tenant’s portion and the total rent. For ZIP 76834, if we assume a standard 30% of income contribution from the tenant towards their rent, the remaining 70% would be covered by the voucher. However, the total reimbursement cannot exceed the SAFMR of $1,040.
To illustrate, let's consider a tenant whose portion of the rent is calculated to be $300. In this scenario, the voucher would cover the remaining $740, bringing the total to the SAFMR of $1,040. If the market rent is $708, then the voucher would cover the entire rent, leaving the landlord with the full market rent plus the tenant's contribution, totaling $1,008.
If the market rent were higher, say $900, the voucher would still only pay up to $1,040, so the landlord would receive the full market rent of $900. But if the market rent exceeds the SAFMR, such as $1,100, then the landlord would have to decide whether to accept the lower reimbursement of $1,040 or not participate in the program at all for that particular unit.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 76834 is therefore determined by comparing the local market rent to the SAFMR. Given the current figures, landlords would generally see a surplus when renting a two-bedroom apartment at the local market rate of $708, as the voucher system effectively guarantees them the SAFMR of $1,040.
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.