Location: Beaumont-Port Arthur, TX | Metro: Beaumont-Port Arthur, TX MSA
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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $168,019 | 0.89% | C |
U.S. Census Bureau data (2024)
ZIP code 77642, located within the Beaumont-Port Arthur, TX MSA, presents a unique profile when compared against typical ZIP codes in the same metropolitan area. The Fair Market Rent (FMR) for ZIP 77642 stands at $1090 for fiscal year 2024, closely matching the market rent of $1,095. This indicates that rental prices are aligned with the federal guidelines, suggesting a stable and predictable rental market.
The median home value in ZIP 77642 is $120,452, which is notably lower than the average home values seen across the broader Beaumont-Port Arthur, TX MSA. This discrepancy, combined with a higher-than-average renter share of 47.0%, suggests that ZIP 77642 could be considered a value pocket within the metro. Value pockets are areas where property values are significantly lower than the surrounding region, making them attractive to investors looking for affordable entry points.
A high renter share with below-metro home values is often indicative of a Section 8 sweet spot. In ZIP 77642, the significant percentage of renters, coupled with the relatively low median home value, implies that there is a substantial demand for subsidized housing. Landlords in this ZIP can benefit from participating in the Section 8 program, as it ensures a steady stream of tenants who can afford to pay the rent due to government assistance.
To further contextualize the position of ZIP 77642 within the Beaumont-Port Arthur, TX MSA, it's important to note that the characteristics of this ZIP suggest it is a neighborhood where affordability is a key factor for both homeowners and renters. This makes it an ideal location for investors interested in properties that cater to lower-income families and individuals seeking rental support through the Section 8 program.
In summary, ZIP 77642 is a value pocket within the Beaumont-Port Arthur, TX MSA, offering landlords and small-portfolio investors an opportunity to invest in a stable rental market with a high concentration of potential Section 8 tenants. The combination of reasonable rental prices and below-average home values, along with a high renter share, positions this ZIP as a favorable investment choice for those looking to capitalize on the demand for affordable housing.
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.