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 | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $135,749 | 0.98% | C |
| 3BR | $1,730 | $227,876 | 0.76% | D |
| 4BR | $2,120 | $335,196 | 0.63% | D |
U.S. Census Bureau data (2024)
ZIP 77706 is part of the city of Beaumont, Texas, encompassing a diverse neighborhood with a total population of 30,393 residents. The area has a significant rental market, with 41.7% of the population being renters, indicating a robust demand for rental properties. The median household income in this ZIP code is $73,185, which suggests that the residents have a decent economic standing. Additionally, the median home value stands at $233,859, reflecting the overall property values in the region.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 77706 as of fiscal year 2024 is set at $1,220. This figure is notably lower than the market rent, which is estimated at $1,401 according to ZORI (Zillow Observed Rent Index). This discrepancy between FMR and market rent presents an opportunity for investors who are willing to manage properties actively, as they can potentially charge higher rents while still qualifying for Section 8 vouchers.
The question of whether ZIP 77706 fits a hands-off voucher operator or a hands-on value-add buyer hinges on the local market dynamics and the investor's strategy. For a hands-off operator, the lower FMR might pose challenges in maintaining profitability without increasing operational efficiency. On the other hand, a hands-on value-add buyer could leverage the higher market rent to improve property conditions and attract tenants willing to pay above the FMR, thus enhancing the investment's return.
In summary, ZIP 77706 offers a mix of moderate property values and a strong rental market, with a clear gap between FMR and market rent. This makes it particularly suitable for investors who are prepared to engage in active property management and seek opportunities to add value through improvements and strategic tenant acquisition.
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.