Location: Gonzales County, TX | Metro: DeWitt 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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $154,994 | 0.76% | D |
| 3BR | $1,410 | $212,733 | 0.66% | D |
U.S. Census Bureau data (2024)
Cuero, TX, ZIP code 77954, is a residential area with a population of 11,424. The neighborhood has a relatively low rental rate at 29.2%, indicating a community where most residents own their homes. The median household income in the area is $66,195, which suggests a middle-class demographic. Median home values stand at $220,819, reflecting a stable housing market.
The Federal Market Rent (FMR) for ZIP 77954 is set at $1,130 for the fiscal year 2026, whereas the actual market rent, according to the Census ACS, is $887. This gap between the FMR and the market rent can be beneficial for Section 8 investors, as it allows for higher rents to be charged under the voucher program compared to the local market rates.
Given these conditions, ZIP 77954 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher allowable rents under the Section 8 program provide a reliable income stream with less risk due to the government's backing. Meanwhile, value-add buyers can leverage the discrepancy between FMR and market rent to improve properties and command higher rents, still within the Section 8 guidelines.
Investors should consider the ownership preference of the area, with only 29.2% of residents being renters, which could indicate a slower turnover rate. However, the financial benefits of operating under the Section 8 program, especially with the favorable rent differential, make this ZIP code an attractive investment opportunity.
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.