Location: Runnels County, TX | Metro: Concho County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 76875 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,070, while the Census ACS indicates that the market rent is only $536. This creates a gap of $534, or approximately 99.6%, between what landlords can charge under the Section 8 program and the prevailing market rate.
Given that the FMR exceeds the market rent, this scenario presents a unique opportunity for landlords and small-portfolio investors. The difference means that voucher tenants can be leveraged to increase rental yields above those offered by typical market-rate tenants. By participating in the Section 8 program, landlords can secure a higher rental income, which directly translates into better returns on investment.
The analysis must also consider the broader context of the area. In ZIP 76875, renters account for 14.5% of the population, indicating a relatively low demand for rentals compared to homeownership. However, the median income of $61,875 suggests that there is a segment of the population that may struggle to afford market-rate housing without assistance. This makes the Section 8 program particularly attractive for those who cannot otherwise afford the local housing costs.
While the FMR provides a higher rent threshold, it's important to note that the actual rent received from voucher tenants is often lower due to the payment standard set by the Housing Authority. This standard is typically less than the FMR but still above the market rent, ensuring that landlords receive a premium over the local rental average. Therefore, the cost of housing voucher tenants below open-market rates is minimal, and the benefits in terms of stable tenancy and government-backed payments outweigh any potential drawbacks.
In conclusion, the Section 8 program in ZIP 76875 offers a compelling yield play for landlords and small-portfolio investors. The substantial gap between the FMR and market rent allows for higher rental incomes, making it a strategic choice in an area where the median income is lower and the percentage of renters is relatively small.
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.