Section 8 Fair Market Rent (FMR) for ZIP 77522 - 2027

FY 2027 Fair Market Rent Rates

The potential risks for investing in Section 8 properties in ZIP code 77522, located in Unknown, TX, are significant and must be carefully considered. First, the tenant turnover rate could pose a challenge, especially when comparing the market rent at an unspecified figure to the Fair Market Rent (FMR) of $1330 per month for fiscal year 2024. High turnover can lead to increased costs associated with finding new tenants and preparing the property for occupancy.

Second, there is a notable exposure to vacancies. The average days on market (DOM) is currently unknown, which means landlords cannot accurately predict how long it will take to fill a vacancy. This uncertainty can result in lost rental income and additional expenses such as maintenance and utilities while the unit remains unoccupied.

Third, the risk of deferred maintenance is elevated due to the lack of specific data regarding the typical home value and median income in the area. Without these details, it's difficult to gauge the financial capacity of residents to maintain homes properly, potentially leading to higher repair and upkeep costs for landlords.

However, these risks must be weighed against the high proportion of renters in the area. The renter share is unspecified but generally indicates a strong demand for rental properties, including those that accept Section 8 vouchers. A high renter density often translates into a robust market for subsidized housing, which can mitigate some of the risks associated with vacancy and maintenance.

Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 77522, Unknown, TX.

Data Sources: FMR data from HUD (2027).

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.