Location: College Station-Bryan, TX | Metro: College Station-Bryan, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
To determine whether you should buy in ZIP code 77882 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $970 cover your debt service?
If the answer is yes, proceed to the next question. If the FMR does not clear the debt service on a property, then the investment is not viable. Debt service includes all mortgage payments, property taxes, insurance, and other fixed costs.
2) How does the market rent compare to the FMR?
If market rent is above $970, then the area has potential for both Section 8 and market-rate tenants. This can provide flexibility in rental income sources.
If market rent is exactly $970, then the investment will be purely Section 8 dependent. Ensure there is sufficient demand for Section 8 housing in the area.
If market rent is below $970, then the investment will likely be unprofitable outside of Section 8, making the demand for Section 8 vouchers critical.
3) Is the tenant demand strong enough?
The percentage of renters and the days on market (DOM) are key indicators. However, the data provided does not specify these percentages or the average DOM. To make an informed decision, you must evaluate if the local demand for rental properties is high enough to ensure occupancy. A higher percentage of renters and a lower DOM suggest a stronger demand.
If the FMR covers your debt service and the market rent is above or equal to the FMR, then the investment is feasible. If the market rent is below the FMR, the decision hinges on the strength of the demand for Section 8 housing.
In conclusion, the viability of purchasing in ZIP 77882 for Section 8 investment depends on the ability of the FMR to cover debt service, the comparison between market rent and FMR, and the robustness of the local rental market demand. Without specific data on the percentage of renters and DOM, the final decision relies on these two factors being met.
Data Sources: FMR data from HUD (2027).
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.