Location: Corpus Christi, TX | Metro: Corpus Christi, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,510 for ZIP code 78362 can sufficiently cover the mortgage on a property valued at $220,859. The answer depends on the interest rate and loan terms, but let's consider a standard 30-year fixed-rate mortgage at an average rate of around 5%. A mortgage payment on a $220,859 home would be approximately $1,140, leaving a comfortable cushion above the mortgage payment for maintenance and other costs.
The same investor could also doubt if there is sufficient rental demand in the area, given that only 34.0% of the housing units are rented. While this percentage might seem low, it's important to note that even a modest rental demand can support a small portfolio. Additionally, the rental vacancy rate in ZIP 78362 is 4.5%, indicating a relatively strong market where demand meets supply closely. This suggests that finding tenants should not be a significant issue for landlords.
A final objection could be whether the Housing Choice Voucher program will keep up with the market rents, which stand at $1,292. The voucher amount in ZIP 78362 is currently set at $837, which is below the market rent. However, the voucher program adjusts its payments periodically based on local market conditions and federal guidelines. Landlords participating in the voucher program should expect some fluctuation and possibly need to seek additional sources of income to cover the gap between voucher amounts and market rents.
To summarize, while the FMR of $1,510 provides a good buffer over the estimated mortgage payment of $1,140, the rental demand at 34.0% is adequate for small portfolios. Lastly, although the current voucher amount of $837 does not fully cover the market rent of $1,292, periodic adjustments in the voucher program can help mitigate this issue. Investors should remain vigilant and prepared for potential changes in these factors.
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.