Location: Walker County, TX | Metro: Walker County, TX
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 | $900 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $168,602 | 0.73% | D |
| 3BR | $1,680 | $271,766 | 0.62% | D |
| 4BR | $1,770 | $328,975 | 0.54% | F |
U.S. Census Bureau data (2024)
52.4% of residents in ZIP code 77340 in Huntsville, TX, are renters, indicating a robust demand for rental properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,200, which serves as a benchmark for what tenants can afford under the Section 8 program. Currently, the market rent, measured by ZORI, stands at $1,163, slightly below the FMR but still providing a competitive figure for landlords. With a median home value of $275,079, it's clear that homeownership is a significant part of the local economy, yet the high renter share suggests that many prefer leasing. The median income in the area is $48,538, which is crucial for understanding the financial capacity of potential tenants. A 58-day Days on Market (DOM) average implies that properties are typically occupied within two months of being listed, showcasing the swift turnover rate landlords can expect. Furthermore, only 0.2% of listings experience price cuts, indicating that property values are stable and well-regarded. Given these factors, the Section 8 program remains a viable option for landlords and small-portfolio investors in Huntsville, TX.
The alignment between the FMR and market rent provides a solid foundation for maintaining profitability while ensuring affordability for tenants. The low percentage of price-cut shares signals confidence in the local real estate market, suggesting that landlords can set their rents close to the ZORI without fear of having to reduce prices later. Additionally, the relatively short DOM period is a positive indicator for cash flow and occupancy rates, which are key concerns for any landlord. The median income, while not exceptionally high, supports the possibility of attracting tenants who can meet the rental requirements, especially when considering the assistance provided by the Section 8 program.
In conclusion, with a fair balance between demand and supply, stable property values, and supportive government programs, ZIP code 77340 presents a favorable environment for landlords and small-portfolio investors looking to engage in the Section 8 housing assistance program. The verdict for Section 8 participation in Huntsville, TX, is a strong recommendation due to the economic conditions and tenant demographics.
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.