Location: Lavaca County, TX | Metro: Colorado 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 | $890 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $298,558 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 77964 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is $1,130. However, the local market rent, based on Census ACS data, is lower at $899. This discrepancy means landlords can either receive a higher rent payment through the voucher program or face a potential surplus if they choose to charge the local market rate.
To understand what a voucher actually pays, it's essential to consider the components involved. The voucher holder pays a portion of their income towards rent, typically 30%. For instance, if a tenant's monthly income is $1,500, they would contribute $450 towards rent. The remaining amount up to the SAFMR is covered by the housing authority, along with utility allowances.
In ZIP 77964, the housing authority will reimburse you the difference between the tenant's contribution and the SAFMR. Using the example above, if the tenant contributes $450, the housing authority will pay the remainder of the SAFMR, which is $680. This brings the total reimbursement to $1,130 for a two-bedroom unit. If your rent is below the SAFMR, the housing authority will still only pay up to the SAFMR limit.
Landlords should also be aware of utility allowances. These vary but generally cover a significant portion of the tenant's utilities. In ZIP 77964, these allowances are separate from the rent reimbursement and can range from $200 to $300 per month depending on the specifics of the voucher and the number of bedrooms.
The typical reimbursement gap or surplus in ZIP 77964 for a two-bedroom unit is a surplus for landlords. Given the local market rent is $899, and the SAFMR is $1,130, landlords could potentially earn more than the average market rent if they accept Section 8 vouchers. This surplus is $231 per month, assuming the landlord charges the SAFMR rate.
It's important to note that while the SAFMR provides a higher benchmark, the actual amount received by landlords may be influenced by the tenant's ability to pay and the specific terms of the voucher. Nonetheless, the economic reality in ZIP 77964 suggests that landlords stand to benefit financially from participating in the Section 8 program.
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.