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 | $1,020 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $140,276 | 1.04% | B |
| 3BR | $1,950 | $208,165 | 0.94% | C |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 77455 reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,190, while the Census ACS reports the market rent at $1,203. This represents a gap of $13, or approximately 1.1%, indicating that the market rent slightly exceeds the FMR.
In this scenario where the FMR is lower than the market rent, landlords and small-portfolio investors face a decision regarding housing voucher tenants. Accepting voucher tenants at rates below the open-market level can be financially challenging. The cost of maintaining properties and covering expenses such as taxes, insurance, and repairs must be carefully considered against the slightly reduced rental income from voucher tenants.
Louise, TX, with its 21.6% renter population, has a median home value of $356,576 and a median income of $77,625. These figures suggest that the local economy supports a mix of homeowners and renters, but the relatively high median home value and median income indicate a potential preference for homeownership over renting. However, the presence of Section 8 voucher holders can still provide a stable tenant base, albeit at slightly lower rates compared to the open market.
To maximize returns, landlords should consider the long-term stability provided by voucher tenants versus the short-term gains from higher market rents. While the immediate financial impact of accepting voucher tenants may be less favorable due to the $13 gap, the security of lease agreements and the government-backed payments can outweigh the risks associated with fluctuating market rents.
Investors looking to enter the Louise, TX market should also factor in the broader economic context. With a median income of $77,625, there is a substantial pool of potential tenants who could afford higher rents, but the availability of Section 8 vouchers means competition for these higher-paying tenants. Thus, the decision to accept voucher tenants should be part of a larger strategy to balance risk and reward in an area where rental demand is influenced by both market dynamics and government assistance programs.
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.