Location: McCulloch County, TX | Metro: Concho County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The ZIP code 76858 presents a unique challenge for both renters and landlords alike. With a median household income of $71,875, it is evident that the financial landscape here is relatively robust. However, the question remains whether this income level can support the local market rate for rent, which unfortunately is listed as N/A. This absence of data suggests either limited rental properties or an underreported market rate.
In contrast, the federally established Fair Market Rent (FMR) for the metro area in fiscal year 2026 stands at $1,090. This figure represents the standard payment amount for housing vouchers, indicating a baseline for affordable rental costs. Given the median income and assuming a typical budget allocation where 30% of income goes towards housing, a household in ZIP 76858 would be able to afford approximately $1,796 per month on rent. This is significantly higher than the FMR, suggesting that those who qualify for housing vouchers might find it challenging to cover the actual market rates if they exist above the FMR.
The ZIP code has a low percentage of renters at only 4.7%, with a total population of 212. This implies a highly competitive environment for landlords, as there are fewer potential tenants relative to the number of homes available. The scarcity of renters could drive down market rates, making it difficult for landlords to achieve high rental yields. Additionally, the affordability gap between the median income and the FMR indicates a reliance on government assistance for many tenants, further complicating the rental market dynamics.
For landlords considering their strategy in ZIP 76858, the takeaway is clear: focusing on voucher-supported rentals might be necessary due to the limited number of cash-paying tenants. While accepting vouchers ensures a steady stream of rental income, it also ties landlords to government payment schedules and regulations. Conversely, targeting cash-paying tenants could yield higher monthly returns but requires a careful assessment of the local rental market to ensure competitiveness and occupancy.
In summary, landlords in ZIP 76858 must balance the benefits of voucher programs with the potential for higher cash rents, all while navigating a tight market with a small pool of potential tenants. Understanding the local income levels and rental market nuances will be crucial in formulating a successful rental strategy.
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.