Location: Beaumont-Port Arthur, TX | Metro: Beaumont-Port Arthur, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The median income in ZIP code 77613 stands at $72,667, which places significant constraints on the financial capacity of households to afford the market rate rent of $1,028. This figure represents the actual rental cost that tenants face in the area. Comparatively, the Fair Market Rent (FMR) standard set by HUD for voucher payments in fiscal year 2024 is $1,050, slightly above the current market rate.
The affordability gap becomes evident when considering that a household earning the median income would typically allocate around 30% of their income towards housing costs, as recommended by federal guidelines. At 30%, a household in ZIP 77613 should be able to afford a maximum rent of approximately $1,817, which far exceeds both the market rate and the FMR standard. This indicates that many residents rely heavily on subsidies such as Section 8 vouchers to manage their housing expenses.
With only 17.3% of the 692 population being renters, competition among landlords is relatively low. However, the reliance on subsidized housing means that landlords must consider the benefits and drawbacks of accepting Section 8 vouchers versus relying solely on cash-paying tenants. Vouchers guarantee consistent and timely rent payments, albeit at a fixed rate, while cash-paying tenants might offer higher rents but come with greater risk of non-payment.
The takeaway for landlords is that ZIP 77613 presents an environment where Section 8 vouchers play a crucial role in the rental market. Accepting vouchers ensures a steady stream of income and reduces the risk of vacancy, especially given the high proportion of residents who need financial assistance to cover rent. For small-portfolio investors, the decision to accept vouchers should be balanced against the potential for higher rents from cash-paying tenants, keeping in mind the limited number of renters in the area.
Data Sources: FMR data from HUD (2027). 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.