Location: College Station-Bryan, TX | Metro: College Station-Bryan, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 77867 focuses on the financial implications of Section 8 housing for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, for fiscal year 2024, is set at $1090 per month. To derive the cap-rate picture, we first need to annualize this figure to get an annual rental income of $13,080.
The median home value in ZIP 77867 is not available, which complicates a direct comparison between FMR and market rents. However, if we were to assume that the market rent is also $1090 per month, the annualized market rent would be identical at $13,080.
To calculate the implied gross yield, we use the formula: Gross Yield = (Annual Rental Income / Property Value) * 100. Given the median home value is not provided, we cannot compute the exact gross yield. However, if we hypothetically consider a property value, the calculation would provide insights into the potential returns.
Considering the 1.5% renter density in ZIP 77867, it's important to note that this indicates a relatively low proportion of renters in the area compared to homeowners. This could suggest that there might be less demand for rental properties, including those participating in the Section 8 program. Additionally, the lack of data on the days on market (DOM) means we cannot assess how quickly properties are rented out, which is a key factor in evaluating investment performance.
In conclusion, while the annualized FMR of $13,080 provides a clear benchmark for potential rental income, the absence of specific market rent data and median home values hinders a precise cap-rate and gross-yield analysis. The hypothetical scenario based on FMR would only be realistic if the actual market conditions closely mirror these figures, which is uncertain without additional data points. Landlords and investors should gather more detailed local market information to make informed decisions about Section 8 participation in ZIP 77867.
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.