Location: Wharton 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 | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $60,025 | 1.48% | A |
| 2BR | $1,150 | $105,010 | 1.1% | B |
| 3BR | $1,540 | $203,475 | 0.76% | D |
| 4BR | $1,720 | $296,132 | 0.58% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 77437, located in El Campo, TX, within the Wharton County metro area, reveals several key points regarding the viability of voucher tenants. The HUD Fair Market Rent (FMR) for the area, set at $1,070 for fiscal year 2026, slightly exceeds the current market rent of $1,042 based on Census ACS data. This indicates that voucher tenants will generally cashflow at the FMR rate, providing a modest buffer above typical market rates.
To further assess the investment potential, consider the median home value in the area, which stands at $226,580. Using this figure, we can calculate a rent-to-price ratio, which is an important metric for understanding the relative affordability of renting versus buying. In ZIP 77437, the annual rent of $1,042 per month translates to $12,504 annually. Dividing this by the median home value gives us a rent-to-price ratio of approximately 5.5%. This ratio suggests that renting is relatively affordable compared to buying, which could influence the local housing market dynamics.
However, it's worth noting that the median days on market (DOM) for homes in this area is listed as N/A, and the percentage of listings that experienced a price cut is 0.2%. These figures indicate a stable housing market with little fluctuation, suggesting that there is a consistent demand for both rental and ownership properties.
In conclusion, for Section 8 investors in ZIP 77437, the strongest angle is likely cashflow. With voucher tenants paying slightly above market rent, and the stability indicated by the low percentage of price cuts and presumably short DOM periods, investors can expect a reliable income stream without the risks associated with volatile markets. Additionally, the favorable rent-to-price ratio supports the notion that the area remains attractive for renters, ensuring a steady pool of potential tenants.
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.