Location: Concho County, TX | Metro: San Angelo, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,070 |
| 5 Bedrooms | $2,401 |
| 6 Bedrooms | $2,689 |
| 7 Bedrooms | $2,904 |
| 8 Bedrooms | $3,049 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,180 for ZIP 76955 in Vancourt, TX, can sufficiently cover the mortgage on a typical home. According to recent data, the median home value in ZIP 76955 is approximately $183,000. Assuming an average interest rate and a standard loan term, a mortgage payment on such a home could range widely depending on down payment and other factors. However, the median rent-to-price ratio suggests that properties are generally affordable, with the median home value being under 4x the median income.
The second objection concerns the rental vacancy rate, which stands at 0.0%. This figure indicates that there is robust demand for rentals in the area. A zero percent vacancy rate means that every rental unit is occupied, suggesting strong tenant demand and low risk of vacancies. However, it's important to note that this statistic alone does not guarantee that all units will remain rented at the desired price point, especially if market conditions change.
Lastly, investors might wonder if the Housing Choice Voucher Program (commonly known as Section 8) will keep pace with the local market rents. Unfortunately, the specific market rents for voucher holders in ZIP 76955 are not readily available. What we do know is that the median rent in the area is $1,180, which aligns with the FMR. While the federal government adjusts voucher amounts periodically, ensuring they cover a reasonable portion of local rents, there is no guarantee that these adjustments will perfectly match the local market conditions.
In summary, while the FMR of $1,180 should provide a solid base for covering mortgage payments on homes valued around $183,000, the lack of precise data on voucher amounts means there is some uncertainty regarding how well vouchers will keep up with market rents. The extremely low rental vacancy rate signals high demand, but investors should still be cautious about potential changes in the market.
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.