Location: Sterling County, TX | Metro: Sterling County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $900 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 76951 in Sterling County, TX, reveals a clear opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1150, which significantly exceeds the average market rent reported by the Census ACS at $952. This gap indicates that voucher tenants can easily cashflow at the FMR, providing a strong financial buffer for property owners.
To further understand the investment potential, consider the median home value in the area, which stands at $209,283. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.55%. This low ratio suggests that rental income represents a modest portion of the total housing value, indicating that the primary driver of returns in this market is likely to be stable rental income rather than speculative price appreciation.
In terms of days on market (DOM) and the percentage of homes that experience price cuts, these metrics are not available for ZIP 76951. However, given the disparity between the HUD FMR and the actual market rent, it's evident that the rental market is robust and less prone to fluctuations typical in areas where market rents closely match FMRs. This stability is crucial for investors looking to manage their properties without constant rent adjustments.
The strongest angle for investors in ZIP 76951 is the guaranteed cashflow provided by the higher FMR compared to the market rent. Landlords can secure steady income by accepting Section 8 vouchers, knowing they will receive a rate above the local average, thus ensuring profitability and reducing the risk of vacancy.
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.