Location: Washington County, TX | Metro: College Station-Bryan, 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 | $850 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $280,282 | 0.39% | F |
| 3BR | $1,350 | $268,108 | 0.5% | F |
| 4BR | $1,600 | $303,169 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 77868 (Navasota, TX) might raise several objections regarding the feasibility of investing in the area. Here, we address these concerns with the available data.
Will Fair Market Rent (FMR) of $970 (for the zip code in FY 2024) cover the mortgage on a $275,363 home?
The fair market rent figure of $970 is based on the assumption that it represents the average rental income landlords can expect per unit. To determine if this amount will cover a mortgage, one must consider the interest rates and loan terms. For instance, at an average interest rate of 5%, the monthly mortgage payment on a $275,363 home would be approximately $1,470. This suggests that relying solely on FMR would not cover the mortgage costs. However, it's important to note that FMR is just one measure; actual rental income could be higher depending on the condition and location of the property.
Is there enough renter demand at 29.8%?
The 29.8% renter occupancy rate indicates a moderate level of demand. While this percentage might seem low compared to urban areas, it reflects the local market dynamics. According to recent data, the median sales price in the 77868 zip code is $266,950, suggesting that the market is balanced between buyers and renters. Moreover, the average home value has increased slightly to $275,363, indicating steady appreciation. Although the data does not provide a detailed breakdown of rental demand, the overall trend suggests that there is sufficient demand to support rental investments.
Will vouchers keep pace with $1,019 market rents?
The question of whether vouchers will match market rents hinges on the specific voucher program and its funding. The current fair market rent is set at $970, which is below the market rent of $1,019. This gap means that landlords might need to subsidize the difference if they want to attract voucher holders. However, the data does not specify the exact amount of subsidy provided by voucher programs in this area. It's crucial for investors to research the local HUD guidelines and subsidies to ensure that the financial gap is manageable.
In summary, while the data raises some concerns, particularly around covering mortgage payments and the pace of voucher funding, it also shows steady appreciation in home values and a moderate level of rental demand. These factors should be considered alongside individual financial planning and risk tolerance when making investment decisions in ZIP 77868.
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.