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 | $960 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $303,121 | 0.6% | D |
| 4BR | $2,070 | $397,311 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,160 for ZIP code 76904 can adequately cover the mortgage on a home priced at $324,134. This concern is valid, but let's break it down. The median monthly mortgage payment for a home at this price point, assuming a 4.5% interest rate over a 30-year term, would be approximately $1,575. Clearly, the FMR does not cover the entire mortgage amount, indicating that landlords will need to consider additional income sources or have other financial means to support their investment.
The second objection could be around the renter demand in ZIP 76904, which stands at 40.4%. This percentage suggests a moderate level of rental activity, but it does not guarantee profitability. To better understand the demand, we should look at the vacancy rates and the number of available rental units. If the vacancy rate is high, it could indicate weaker demand despite the 40.4% figure. However, without specific data on vacancy rates and unit availability, we cannot conclusively state the strength of the rental market beyond acknowledging that the demand is present but not overwhelming.
A third potential objection is whether Housing Choice Vouchers will keep up with the market rents of $1,193. The voucher amount typically adjusts annually based on local market conditions. While the data does not provide specific figures for voucher adjustments in ZIP 76904, historically, voucher amounts have been set to cover a significant portion of market rents. Landlords who accept vouchers should expect some fluctuation in rental income due to the annual adjustment process, but generally, vouchers do align with market trends. It's important for landlords to monitor local HUD announcements for precise updates on voucher amounts.
In summary, while the FMR of $1,160 does not fully cover the mortgage on a $324,134 home, there is a moderate level of rental demand at 40.4%. Vouchers should maintain alignment with market rents of $1,193, though exact figures are not provided in the data. Investors must weigh these factors carefully, considering supplementary income streams and staying informed about local housing trends.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.