Location: Duval County, TX | Metro: Duval County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 78357 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,020, while the Census ACS reports the market rent at $739. This creates a gap of $281, which is approximately 38.6% lower than the FMR.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this discrepancy to maximize their yields. By participating in the Section 8 program, they can secure rental income that is higher than what the open market currently offers. For instance, a landlord renting out a property for $739 in the open market can receive $1,020 through the Section 8 voucher program, effectively increasing their monthly cash flow by $281 per unit.
The ZIP code's demographic context further supports this yield play. With 24.2% of residents being renters, there is a substantial demand for affordable housing options. Additionally, the median home value of $80,732 suggests that many homeowners are also within the financial range to benefit from housing vouchers. The median income of $68,000 indicates that a considerable portion of the population might find it challenging to afford market rents without assistance.
However, it is crucial to consider the implications of accepting voucher tenants. While the guaranteed income from the voucher program can be attractive, landlords must ensure that their properties meet the required standards set by the Housing Authority. This includes regular inspections and potential maintenance costs. Despite these considerations, the gap between the FMR and market rent makes ZIP 78357 an appealing location for those looking to optimize their investment yields through the Section 8 program.
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.