Location: Victoria, TX | Metro: Victoria, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 77976 reveals a complex picture due to limited data availability. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for FY 2024 is set at $1330 per month. This figure annualizes to $15,960. However, the median home value in ZIP 77976 is not available, which complicates the calculation of an implied gross yield.
To derive a cap-rate, we typically compare the annual rental income to the property's value. For the 2BR FMR scenario, assuming a property value based on comparable ZIP codes with similar characteristics, let’s use a hypothetical median home value of $250,000 for illustrative purposes. The implied gross yield would be calculated as follows:
$15,960 / $250,000 = 0.06384 or 6.384%. This is the gross yield if the property were valued at $250,000 and rented at the FMR rate.
In the absence of a specific market rent figure, we cannot calculate a precise gross yield for the market rent scenario. However, it’s important to note that the lack of a defined market rent suggests that there may not be sufficient data to establish a robust benchmark, which could indicate low demand or other market anomalies.
The renter density in ZIP 77976 is 0.0%, indicating that very few properties are occupied by renters. This is a critical factor for landlords and small-portfolio investors considering Section 8 participation. A zero percent renter density implies a challenging environment for attracting tenants, especially those who rely on Section 8 vouchers.
The Days on Market (DOM) figure is also not available, which means we cannot assess how quickly properties are being leased. This absence of data further complicates the investment decision process.
Given these conditions, the 2BR FMR scenario provides a clearer, albeit hypothetical, picture of potential returns. However, the actual performance may vary widely due to the low renter density and other market factors. Investors should conduct thorough local market research and consult with local housing authorities to understand the true dynamics of Section 8 participation in ZIP 77976.
The gross yield comparison is straightforward: at the FMR rate, the yield is 6.384%. For a more accurate assessment, investors must determine the actual market rent and median home values in ZIP 77976.
Data Sources: FMR data from HUD (2027). 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.