Section 8 Fair Market Rent (FMR) for ZIP 77963 - 2027
Location: Victoria, TX | Metro: Victoria, TX MSA
Investment Score for ZIP 77963
N/A
Monthly Rent (2BR)
$1,300
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,040 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 3BR |
$1,560 |
$291,878 |
0.53% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$56,804
A landlord considering ZIP code 77963 for Section 8 investments should follow this decision tree:
Step 1: Debt Service Coverage Ratio (DSCR)
- If the Fair Market Rent (FMR) of $1280 can cover the debt service on a property valued at $254,412, proceed to Step 2.
- If not, the answer is No. The rent income will not be sufficient to meet the mortgage obligations.
Step 2: Market Rent vs. FMR
- The market rent in ZIP 77963 is $765 according to the latest Census ACS data. Compare this figure to the FMR.
- If market rent is above FMR, the answer is No. Section 8 tenants receive a fixed amount that is typically less than the market rate, leading to potential losses.
- If market rent is at or below FMR, proceed to Step 3.
Step 3: Demand Analysis
- The rental market in ZIP 77963 has 15.1% of residents classified as renters. However, the days on market (DOM) data is currently unavailable.
- If there is strong demand (high percentage of renters and low DOM), the answer is Yes. There is enough tenant interest to fill vacancies quickly.
- If demand is moderate (renter percentage is reasonable but DOM is high), the answer is It Depends. Consider other factors such as competition and local economic conditions before making a decision.
- If demand is weak (low renter percentage and high DOM), the answer is No. It would be difficult to maintain occupancy rates and manage the property effectively.
Note: The analysis assumes a typical DSCR requirement for investment properties. The exact DSCR needed can vary based on the lender's criteria and the landlord's financial situation. Additionally, the absence of DOM data means that while there is a known percentage of renters, the speed at which units can be filled remains uncertain.
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.