Location: Corpus Christi, TX | Metro: Corpus Christi, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 78370 reveals a distinct difference between the federally determined Fair Market Rent (FMR) and the actual market rent. For a two-bedroom unit, the annualized FMR for FY 2024 is set at $1150 per month, while the Census ACS indicates a market rent of $984 per month. The median home value in this area stands at $195,514.
To derive the gross yield, we first calculate the annual rental income based on these figures. With the FMR at $1150, the annual rental income would be $13,800. This translates into an implied gross yield of approximately 7.06% when compared to the median home value. On the other hand, using the market rent figure of $984, the annual rental income drops to $11,808, resulting in a gross yield of about 6.04%.
The gross yield derived from the FMR is higher, but it's important to consider the practical implications. Given that only 19.3% of residents are renters, the likelihood of consistently achieving the higher FMR rate may be limited. Additionally, the N/A-day DOM (Days on Market) suggests either a very active market or a lack of reliable data, which could affect vacancy rates and thus the actual achievable rental income.
In conclusion, while the Section 8 FMR offers a more attractive gross yield, the actual market conditions and the relatively low renter density in ZIP 78370 suggest that the lower gross yield of 6.04%, based on the market rent, is more realistic. Landlords and small-portfolio investors should use these figures as a starting point for their own detailed calculations, considering factors such as vacancy rates, maintenance costs, and local market dynamics to determine the true net operating income potential.
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.