Location: Washington County, TX | Metro: Washington 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 | $950 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $538,689 | 0.23% | F |
| 3BR | $1,530 | $628,306 | 0.24% | F |
U.S. Census Bureau data (2024)
The ZIP code 77880 in Washington, TX, presents an interesting case for real estate investment, particularly under the Section 8 program. However, it's natural for investors to have reservations. Let's address the primary concerns.
Objection 1: Will the Fair Market Rent (FMR) of $1,150 for the metro area in fiscal year 2026 cover the mortgage on a $531,145 home?
The FMR is indeed a critical factor when considering the viability of a rental property under Section 8. For a home priced at $531,145, let's assume a standard 20% down payment, resulting in a loan amount of $424,916. At a conservative interest rate of 4%, the monthly mortgage payment would be approximately $2,025. The FMR of $1,150 falls short of covering the mortgage payment, indicating that additional income sources or a different financing strategy might be necessary.
Objection 2: Is there enough renter demand at 12.2%?
The percentage of renters in ZIP 77880 is relatively low at 12.2%. This suggests that the majority of residents prefer homeownership, which could translate into lower demand for rental properties. However, the Section 8 program targets those who might otherwise struggle to afford housing, so demand from eligible participants could still be significant. The low rental percentage also implies less competition among landlords, potentially stabilizing rental rates.
Objection 3: Will vouchers keep pace with market rents of $988?
The voucher amounts are adjusted annually based on the local FMR, but they do not always align perfectly with market rents. In ZIP 77880, the current market rent of $988 is below the FMR of $1,150, suggesting that vouchers should adequately cover the cost. However, the effectiveness of this alignment depends on the specifics of the voucher program and the rate of inflation over time. It's prudent to monitor these adjustments closely to ensure continued financial stability.
While the data provides insights into the potential challenges and opportunities in ZIP 77880, it's important to note that external factors such as economic changes, local policies, and demographic shifts can impact the long-term success of any real estate investment. Careful planning and ongoing analysis will be key to navigating these uncertainties effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.