Section 8 Fair Market Rent (FMR) for ZIP 76874 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 76874 reveals a limited dataset, making it challenging to provide a comprehensive Section 8 cap-rate picture. The Federal Market Rent (FMR) for a 2-bedroom apartment in the metropolitan area for fiscal year 2026 is set at $970 per month, annualizing to $11,640. However, the market rent figure is not available, as is the case with the median home value. This lack of information hinders a precise calculation of the gross yield.

Despite these gaps, we can still infer some insights. Assuming a hypothetical scenario where the median home value were known, the gross yield would be calculated by dividing the annualized FMR by the median home value. For instance, if the median home value were $200,000, the gross yield would be 5.82%. In another scenario, if the median home value were $250,000, the gross yield would drop to 4.66%. These figures serve only as examples due to the missing median home value data.

The implied gross yield based on the FMR provides a conservative estimate for potential rental income under Section 8. Given that the market rent data is also unavailable, it's difficult to compare the two yields directly. However, it's worth noting that the absence of market rent figures might indicate a less competitive rental market, potentially making the Section 8 program more attractive to landlords.

With a renter density of N/A%, and an average DOM (Days on Market) of N/A days, the attractiveness of the area for rental investments remains uncertain. A higher renter density generally implies a stronger demand for rentals, while a lower DOM suggests quicker property turnover. Landlords should consider these factors when deciding whether to participate in the Section 8 program or seek other investment opportunities.

In conclusion, while the exact cap rate cannot be determined due to incomplete data, the annualized FMR of $11,640 offers a baseline for potential rental income. Investors should use this figure alongside their own calculations to assess the viability of Section 8 properties in ZIP 76874.

Data Sources: FMR data from HUD (2027).

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.