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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $167,111 | 0.8% | C |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 77705, located within the Beaumont-Port Arthur, TX MSA, reveals several key points that are essential for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $940 for fiscal year 2024, which is significantly lower than the market rent of $1,104 as indicated by the Zillow Observed Rent Index (ZORI).
Voucher tenants in ZIP 77705 will only cashflow marginally at the FMR rate. This means that landlords accepting Section 8 vouchers will see a slight positive cashflow but will need to manage expenses carefully to maintain profitability. The difference between the HUD FMR and the actual market rent suggests that landlords must consider the additional administrative requirements and potential delays associated with Section 8 tenancy.
The median home value in ZIP 77705 is $135,361. Using this figure, we can calculate the rent-to-price ratio, which stands at approximately 1.04%. This ratio indicates that rental income represents a small percentage of the total property value, suggesting that investment returns may be modest compared to areas with higher ratios.
Regarding the days on market (DOM) and price-cutting trends, the median DOM is listed as N/A, and there is a 0.2% share of homes experiencing price cuts. These figures suggest a relatively stable housing market where the buy-versus-rent dynamics do not heavily influence investment decisions. However, the low price-cut share does indicate that sellers are generally able to achieve their asking prices without significant reductions, which could impact the resale value of properties in the future.
The strongest investor angle in ZIP 77705 is stability. With a low price-cut share and a relatively balanced market, investors can expect consistent performance and minimal volatility in their investment portfolios. While cashflow and appreciation may not be as robust as in other markets, the predictability and reliability of returns make it an attractive option for those seeking long-term, steady investment opportunities.
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.