Location: San Angelo, TX | Metro: San Angelo, TX MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,650 | $196,739 | 0.84% | C |
U.S. Census Bureau data (2024)
The ZIP code 76903 is situated in a suburban area of Denton, Texas, characterized by a diverse mix of residential properties. With a population of 29,947, the neighborhood has a significant rental market presence, where 39.8% of residents are renters. The median household income here stands at $49,498, reflecting a middle-class community. The median home value is $153,815, indicating an affordable housing market.
From an investment perspective, the economic landscape of ZIP 76903 is particularly interesting due to the disparity between the Fair Market Rent (FMR) and the actual market rent. For the fiscal year 2024, the FMR is set at $1020, whereas the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,310. This gap suggests that there is room for Section 8 tenants to find suitable housing within the area's FMR limits, while also allowing landlords to potentially earn above-voucher rates from non-voucher tenants.
Given these conditions, ZIP 76903 can be a viable option for both hands-off voucher operators and hands-on value-add buyers. For those seeking a passive income stream, the stable demand for affordable housing and the reliability of government-backed vouchers provide a solid foundation. On the other hand, for investors willing to take a more active role, the opportunity to improve properties and attract higher-paying tenants exists. However, it's important to note that the success of such strategies will depend on the specific property, its condition, and the local market dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.