Location: Kenedy County, TX | Metro: Kenedy County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 78338 presents several challenges for potential Section 8 landlords and small-portfolio investors. Firstly, the tenant turnover rate can be unpredictable due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1,020 for fiscal year 2026. This fixed amount might not cover the actual market rent, leading to financial strain if tenants leave and new ones cannot be found quickly enough.
Vacancy exposure is another significant risk factor. The average days on market (DOM) for rental properties in this area is not available, which makes it difficult to predict how long a property might remain vacant. Vacancies can lead to lost rental income, and since Section 8 rents are fixed, there's little flexibility to adjust rates during periods of vacancy.
The deferred maintenance exposure is also a concern. With no data on the typical home value or median income, it's challenging to assess the likelihood that tenants will maintain the property to a standard that avoids costly repairs. This risk is heightened when considering the fixed rental income that does not account for inflation or rising costs of maintenance and repairs.
Despite these risks, the ZIP code 78338 has a 100.0% renter share, indicating a robust demand for rental housing. High renter density often translates into a strong demand for housing vouchers, which can provide a steady stream of tenants for Section 8 properties. This high concentration of renters supports the stability of the rental market, making it less likely that a property will remain vacant for extended periods.
In conclusion, the risks associated with tenant turnover, vacancy exposure, and deferred maintenance in ZIP code 78338 are substantial. However, the high renter share offers a counterbalance by ensuring a consistent demand for rental units. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.