Location: Matagorda County, TX | Metro: Matagorda 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 | $1,030 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $189,373 | 0.65% | D |
| 3BR | $1,590 | $227,186 | 0.7% | D |
| 4BR | $1,990 | $280,883 | 0.71% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 77414 in Bay City, TX, hinges on analyzing its yield and stability metrics. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is $1,190, while the market rent stands at $865. This indicates that there's a potential upside if properties can be rented at or near the FMR, suggesting a higher yield environment. However, the median home value of $195,932 implies a significant initial investment.
Evaluating stability, we see that 41.6% of residents are renters, which is a moderate figure. Additionally, the days on market (DOM) average is 127 days, which is relatively high, indicating slower property turnover and potentially lower liquidity. The median household income is $59,128, providing insight into the financial capability of the local population to sustain rental payments.
Based on these figures, ZIP 77414 appears to be a market with moderate stability but offers opportunities for higher yields. The gap between the FMR and the current market rent suggests that there could be potential for flipping properties to capture higher rents, but the slow market turnover represented by the DOM figure tempers this optimism. Therefore, this market is best described as a somewhere in between: it's not purely a high-yield, low-stability flip-style market due to the stability concerns, nor is it a steady-cashflow zone given the potential for increased rental income. Landlords and small-portfolio investors should consider the balance between these factors when deciding on investment strategies.
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.