Location: Kleberg County, TX | Metro: Corpus Christi, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $104,617 | 1.25% | A |
| 3BR | $1,620 | $189,445 | 0.86% | C |
| 4BR | $1,890 | $239,750 | 0.79% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 78363 in Kingsville, TX, are significant. First, tenant turnover poses a challenge due to the difference between the market rent of $1,379 and the Fair Market Rent (FMR) of $1,260 for fiscal year 2026, which is based on the metro area. This gap suggests that landlords might face difficulties retaining tenants who are accustomed to the subsidized rates.
Vacancy exposure is another critical concern. The Days on Market (DOM) figure is currently unavailable, indicating a lack of transparency regarding how long properties remain vacant before finding a tenant. This uncertainty can lead to financial strain as landlords must cover mortgage payments and maintenance costs without rental income.
Deferred maintenance is a risk factor, especially considering the typical home value of $147,270 and the median household income of $60,574. The disparity between property values and incomes implies that residents might struggle to afford necessary repairs, leading to higher maintenance costs for landlords. Moreover, the lower income levels suggest that tenants may have limited financial flexibility, potentially affecting their ability to pay rent consistently.
However, these risks are tempered by the high renter share of 49.3%. A significant portion of the population relies on rental housing, which generally translates into a robust demand for Section 8 vouchers. This high density of renters can be advantageous for landlords, as it increases the likelihood of finding qualified tenants who are eager to secure housing through government assistance programs.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.