Section 8 Fair Market Rent (FMR) for ZIP 77987 - 2027
Location: Lavaca County, TX | Metro: Lavaca County, TX
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $840 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$83,750
To determine if you should buy in ZIP code 77987 for Section 8 purposes, follow these steps:
- Step 1: Does the Fair Market Rent (FMR) of $1,040 cover your debt service?
- Yes: If the FMR of $1,040 is sufficient to cover your monthly mortgage payments, property taxes, insurance, and other expenses, then you can proceed to the next step.
- No: If the FMR does not cover your debt service, purchasing a property in ZIP 77987 for Section 8 purposes would be financially unfeasible. Look for areas where the FMR is higher or properties with lower debt service requirements.
- Step 2: How does the market rent compare to the FMR?
- Above FMR: If the market rent is above $1,040, you might consider alternative investments that could yield higher returns outside of Section 8.
- At FMR: If the market rent is exactly $1,040, you can expect to break even on your investment when participating in the Section 8 program.
- Below FMR: If the market rent is below $1,040, you can participate in the Section 8 program and still receive the FMR rate, which could provide a stable income source.
- Step 3: Is there sufficient rental demand in the area?
- High Demand: With 26.7% of residents being renters and an average of N/A days on the market (DOM), there is likely strong demand for rental properties. This suggests that finding tenants should not be a problem.
- Moderate Demand: If the DOM is high but still within a reasonable range, you may experience some difficulty in filling vacancies, but it is manageable given the percentage of renters.
- Low Demand: If the DOM is excessively high, it indicates low demand, and securing tenants might prove challenging despite the percentage of renters.
The decision to invest in ZIP 77987 for Section 8 properties hinges on whether the FMR clears your debt service, the comparison between market rent and FMR, and the level of rental demand. If all conditions align favorably, then the answer is yes. Otherwise, it depends on how willing you are to accept a lower margin or face potential vacancy issues.
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.