Location: Wharton County, TX | Metro: Colorado 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 | $990 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $201,650 | 0.79% | D |
U.S. Census Bureau data (2024)
24.9% of residents in ZIP code 77434 are renters, reflecting a significant portion of the housing market that landlords can tap into. With a Fair Market Rent (FMR) set at $1,170 for metro areas in fiscal year 2026, this figure provides a benchmark for rental pricing. The Census ACS data indicates that the average market rent is slightly higher at $1,229, suggesting landlords can potentially charge above the FMR without deterring tenants. However, the median income of $71,705 must be considered when setting rents to ensure affordability. Despite the relatively high median home value of $169,505, only 0.2% of listings have had their prices cut, indicating a stable market with little need for price adjustments. This stability, combined with the low day DOM (days on market), which is not applicable here but often a key metric, points to a robust demand for rental properties. In conclusion, given the strong rental market dynamics and the slight premium over FMR that tenants are willing to pay, ZIP code 77434 is a favorable location for Section 8 investments.
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.