Location: Madison County, TX | Metro: Grimes County, TX
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 | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $566,352 | 0.25% | F |
| 4BR | $1,660 | $681,790 | 0.24% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 77861 in the TX metro area reveals key insights for landlords and small-portfolio investors. First, regarding the rent math, the Fair Market Rent (FMR) set at $1,010 for the fiscal year 2026 is lower than the current market rent of $1,130 based on Census ACS data. This suggests that landlords can charge slightly above the FMR without significantly deterring tenants.
Second, the acquisition affordability is favorable. The median home value stands at $500,355, which is a reasonable investment considering the potential rental income. However, the lack of data on days on market (DOM) and the price-cut share indicates either a stable market or limited recent sales activity. This absence of information could be seen as a risk factor but does not necessarily impact the overall affordability.
Third, there is a notable tenant demand in ZIP 77861. With a population of 3,065, and 14.1% of residents being renters, there is a consistent pool of potential tenants. This percentage translates to approximately 432 renters, providing a steady base for rental properties.
In conclusion, ZIP 77861 presents a viable opportunity for real estate investment. The rent math works in favor of landlords who can leverage slightly higher market rents compared to the FMR. The median home value offers an affordable entry point into the market, and the existing tenant demand ensures a steady stream of potential occupants. Despite the lack of data on DOM and price-cut share, the combination of favorable rent comparisons and a reliable tenant base makes this area a worthwhile consideration for investment.
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.