Location: Refugio County, TX | Metro: Calhoun County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 77990 for Section 8 properties, follow this decision tree:
1) Does FMR ($1,100) clear debt service on a $133,851 property?
If your debt service (including mortgage, insurance, taxes, and maintenance) is less than or equal to $1,100 per month, then the answer is Yes. The Fair Market Rent (FMR) of $1,100 can cover your expenses comfortably.
If your debt service exceeds $1,100 per month, then the answer is No. The FMR does not sufficiently cover your costs.
2) Is market rent ($1,170) above, at, or below FMR?
If the market rent is above the FMR, which it is at $1,170, then you have some flexibility. Landlords can charge up to $1,170 for a property, making it possible to adjust rents slightly higher than the FMR if necessary.
If the market rent were at or below the FMR, then you would be limited to charging the FMR rate, which could make profitability more challenging.
3) Are 9.0% renters + N/A-day days on market (DOM) enough demand?
If you determine that the 9.0% of the population renting in 77990 is sufficient for your investment strategy, then the answer is Yes. However, the lack of specific data on days on market (DOM) suggests that rental demand is stable but not necessarily high. This means that while there is demand, it may not be robust enough for quick turnovers or high occupancy rates.
If the percentage of renters is too low for your comfort level, or if you require a more active rental market, then the answer is No. The current data indicates a modest demand scenario that might not meet aggressive growth targets.
If your decision hinges on the balance between the number of renters and the days on market, then the answer is It Depends. The absence of DOM data makes it difficult to gauge how quickly you can expect to fill vacancies, but the 9.0% rental rate provides a baseline for demand. Additional local market research may be needed to clarify the vacancy rate and turnover speed.
In conclusion, investing in ZIP code 77990 for Section 8 properties is viable under certain conditions. Ensure that your debt service is covered by the FMR, consider the slight margin above the FMR offered by the market rent, and assess whether the 9.0% rental rate aligns with your investment goals. The decision ultimately depends on your financial requirements and tolerance for a moderate rental market environment.
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.