Section 8 Fair Market Rent (FMR) for ZIP 78361 - 2027

Location: Zapata County, TX | Metro: Jim Hogg County, TX

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$840
2 Bedrooms	$1,050
3 Bedrooms	$1,250
4 Bedrooms	$1,510
5 Bedrooms	$1,752
6 Bedrooms	$1,962
7 Bedrooms	$2,119
8 Bedrooms	$2,225

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,727

Median Household Income

$42,211

Housing Units

1,864

Renter Percentage

43.6%

Occupancy Rate

68.6%

Renter Occupied

558

If a landlord is considering purchasing a property in ZIP code 78361 for Section 8 participation, they must follow a decision tree based on the provided data points.

1. Does FMR $970 (metro FY 2026) clear debt service on a $86,492 property?

To determine if the Fair Market Rent (FMR) of $970 can cover the debt service, we first need to calculate the annual rental income and compare it against the annual debt service. The annual rental income would be $970 multiplied by 12 months, which equals $11,640. Next, we need to know the annual debt service, which includes mortgage payments, taxes, insurance, and maintenance costs. Assuming an average annual debt service of $10,000 for a property valued at $86,492, the FMR does indeed clear the debt service since $11,640 is greater than $10,000. Therefore, the answer is Yes.

2. Is market rent $824 (Census ACS) above, at, or below FMR?

The market rent of $824 is below the FMR of $970. This means that the market is offering lower rents compared to what is considered fair for the area. As such, the answer is Below. However, this also indicates that landlords might struggle to find tenants willing to pay the higher Section 8 rates, which could lead to longer vacancy periods.

3. Are 43.6% renters + N/A-day DOM enough demand?

The percentage of renters in ZIP 78361 is 43.6%, which suggests a moderate demand for rental properties. However, the Days on Market (DOM) data is not available, making it difficult to assess how quickly properties are rented out. Without DOM data, we cannot fully evaluate the speed of demand. Therefore, the answer is It Depends. Landlords should consider other factors such as job growth, population trends, and competition in the rental market to make a more informed decision.

Yes: If the landlord is comfortable with a moderate demand and can manage potential vacancies, then buying a property in ZIP 78361 for Section 8 participation is viable.
No: If the landlord requires high demand and quick turnover, then ZIP 78361 may not be the best investment due to the lack of DOM data and the market rent being below the FMR.
It Depends: The decision hinges on additional research into local economic conditions and the landlord's risk tolerance.

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.