Location: Victoria, TX | Metro: Victoria, 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 | $1,080 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,090 | $192,650 | 0.57% | F |
| 2BR | $1,360 | $176,291 | 0.77% | D |
| 3BR | $1,620 | $265,578 | 0.61% | D |
| 4BR | $1,840 | $424,570 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 77905, located in Victoria, Texas, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1,290, which is higher than the market rent of $1,103 as reported by the Census ACS. This means that voucher tenants can provide positive cash flow at the FMR rate, without requiring premium units.
To further understand the investment potential, the median home value in the area is $260,365. Using this figure, we can calculate the rent-to-price ratio. The ratio is derived by dividing the annual rent by the median home value. In this case, it is approximately 5.7%, calculated as follows: ($1,290 * 12) / $260,365 = 5.7%. This indicates that the rental income generated from a property valued at the median would be relatively modest compared to its purchase price, suggesting that the primary benefit of investing in this ZIP code is through steady cash flow rather than high rent-to-price ratios.
The dynamics between renting and buying do not significantly impact the decision-making process for investors, given that the median days on market (DOM) is listed as N/A and the share of homes that underwent price cuts is a mere 0.3%. These factors imply a stable real estate market with little fluctuation in home values and a consistent demand for rentals.
In conclusion, the strongest investor angle in ZIP 77905 is cash flow, due to the discrepancy between the HUD FMR and the market rent, allowing landlords to generate positive returns on their investments with standard units.
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.