Location: Mills County, TX | Metro: Brown County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 76890 operate under specific financial guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $970 for the fiscal year 2026. This figure represents the maximum amount that the Section 8 program will pay for a rental unit in this specific ZIP code.
In comparison, the local market rent for a similar two-bedroom unit is reported at $850 according to the Census ACS (American Community Survey) data. This difference highlights the premium that landlords can potentially receive from participating in the Section 8 program.
A voucher payment consists of several components. Firstly, the tenant is responsible for paying a portion of the rent, which is typically 30% of their income. Secondly, there are utility allowances that cover a tenant's energy costs. These allowances vary but are designed to ensure that tenants do not spend more than 30% of their income on utilities. Lastly, the remainder of the rent is covered by the housing authority up to the SAFMR limit.
To illustrate, if a tenant's portion of the rent is $291 (assuming 30% of a hypothetical income), and the utility allowance is $100, then the housing authority would cover the remaining $579 to reach the total rent of $970. This calculation ensures that landlords receive the full SAFMR amount even if the tenant's income is low.
However, it is important to note that the SAFMR of $970 applies specifically to this ZIP code, meaning that landlords in ZIP 76890 cannot charge more than this amount for a two-bedroom unit to be eligible for full Section 8 reimbursement.
Given these parameters, landlords in ZIP 76890 can expect a reimbursement gap or surplus when comparing the SAFMR to the local market rent. In this case, the SAFMR exceeds the local market rent by $120 per month. This means that landlords who participate in the Section 8 program can expect a surplus of $120 above the typical market rate for a two-bedroom unit in this area.
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.