Location: Mills County, TX | Metro: Lampasas County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 76844 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 76844 in fiscal year 2024 is $910, while the market rent based on the Census ACS is $702. This indicates a $208 difference, or approximately 29.6%, between the FMR and the market rent.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. Voucher tenants, who are guaranteed payments up to the FMR, provide a stable income source that is above the typical market rate. This makes properties in ZIP 76844 attractive for those seeking consistent returns without the volatility often associated with the open rental market.
The local context further supports this analysis. With 22.2% of residents being renters, there is a notable demand for affordable housing. The median home value stands at $370,373, which is relatively high for the area, indicating that homeownership may be out of reach for many. Additionally, the median income of $68,032 suggests that a portion of the population would benefit from the subsidies provided by the Section 8 program.
Investing in Section 8 properties in ZIP 76844 offers a reliable income stream due to the discrepancy between FMR and market rents. It also aligns with the community's need for affordable housing options, ensuring a steady pool of potential tenants.
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.