Location: San Saba County, TX | Metro: McCulloch County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,070 in ZIP 76872 can cover the mortgage on a home. According to recent data, the average home price in this area is approximately $1,963,394. This figure suggests that the monthly mortgage payments on a typical home would be quite high, potentially exceeding the FMR. However, it's important to note that the FMR is designed to reflect a reasonable estimate of what a tenant can afford, not necessarily the entire cost of homeownership.
The investor might also wonder if there is sufficient rental demand at a 9.7% vacancy rate. The data indicates that the majority of households in 76872 are owner-occupied or have mortgages. The rental market primarily caters to properties with 3+ bedrooms, with rents typically ranging between $750 and $999 per month. Given that the vacancy rate is relatively low compared to the national average, it suggests that there is some demand for rental properties in this ZIP code. However, the data does not provide a comprehensive picture of the rental market size or growth potential.
A final concern could be whether vouchers will keep pace with market rents of $1,267. HUD Fair Market Rents (FMRs) for 76872 indicate that 1-bedroom rents are currently at $863 per month, an increase of 2.4% year-over-year. While this is below the market rent, it does show that FMRs are adjusting upward. However, the data does not specify how voucher amounts are adjusted over time or if they will sufficiently cover the higher market rents. It's crucial for investors to monitor both FMR and voucher trends to ensure they remain aligned with market conditions.
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.