Location: La Salle County, TX | Metro: Laredo, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 78019 for Section 8 purposes, follow these steps:
Step 1: Clearing Debt Service
The Fair Market Rent (FMR) for ZIP 78019 in fiscal year 2024 is set at $1090. To decide if this amount can cover the debt service on a property, you need to know the specific cost of the property you're considering. If the FMR of $1090 does not exceed the total monthly mortgage payment and other expenses such as insurance and property taxes, then the answer is No. The FMR must be high enough to ensure that the rental income covers all your financial obligations.
Step 2: Market Rent Comparison
The Census American Community Survey indicates that the average market rent in ZIP 78019 is $814. This figure is below the FMR of $1090. Landlords who can secure Section 8 tenants will likely find that the rents they receive are higher than what the general market offers. Thus, if your goal is to rely solely on market rent, the answer is No. However, if you are targeting Section 8 tenants specifically, the answer is Yes.
Step 3: Tenant Demand Assessment
In ZIP 78019, 14.2% of residents are renters. Additionally, the days on market (DOM) for properties is not specified, which could indicate either a strong or weak market depending on the context. Assuming the DOM is reasonable, the presence of a significant number of renters suggests there is demand for rental housing. Therefore, if the DOM is short and indicative of a competitive market, the answer is Yes. If the DOM is long, indicating low demand, the answer is No. If the DOM is neither particularly short nor long, making it difficult to gauge demand without additional context, the answer is It Depends.
In summary, purchasing in ZIP 78019 for Section 8 investment hinges on the ability of the $1090 FMR to cover your debt service, the fact that market rent is lower at $814, and the assessment of tenant demand based on the percentage of renters and the DOM of properties. If all conditions align favorably, the investment is viable; otherwise, it requires further analysis or might not be advisable.
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.