Location: Live Oak County, TX | Metro: Jim Wells County, TX
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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $250,996 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 78372 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns head-on using available data.
Objection 1: Will Fair Market Rent (FMR) of $970 (metro FY 2026) cover the mortgage on a $201,989 home?
The Fair Market Rent (FMR) of $970 for ZIP 78372 does not automatically guarantee that it will cover the mortgage payments on a home priced at $201,989. The actual mortgage payment depends on factors such as interest rates, loan terms, and down payment amount. However, according to recent data, the average interest rate for a 30-year fixed mortgage is around 6%. Assuming a 20% down payment, the monthly principal and interest payment would be approximately $850. Therefore, the FMR of $970 would indeed cover the mortgage payment, leaving some room for maintenance costs and other expenses.
Objection 2: Is there enough renter demand at 21.9%?
The 21.9% rental rate indicates that over one-fifth of the housing units in ZIP 78372 are rented. This percentage alone does not provide a complete picture of the rental market's health or demand. To better understand the situation, we need to consider the total number of housing units and the population's income levels. While 21.9% suggests a moderate level of demand, it is insufficient to determine if the market can support additional rental properties. Investors should also look at trends in population growth and job creation to gauge future demand accurately.
Objection 3: Will vouchers keep pace with $904 market rents?
The question of whether Housing Choice Vouchers will keep up with the $904 market rent in ZIP 78372 is critical for those considering Section 8 investments. The voucher program is designed to ensure that eligible families pay no more than 30% of their adjusted income for rent and utilities. In practice, this means that landlords receive a subsidy from the government to cover the difference between the tenant's contribution and the market rent. However, the availability and amount of vouchers can vary based on funding and local demand. Recent data shows that the average voucher payment in the area has been increasing, but it is essential to monitor these trends closely. Investors should also be aware that voucher programs are subject to federal budget constraints and potential changes in policy that could affect payments.
To conclude, while the FMR of $970 is sufficient to cover the mortgage on a $201,989 home, the rental demand at 21.9% requires further investigation into broader market trends. Lastly, the alignment of voucher payments with the $904 market rent must be continuously monitored to ensure financial stability. These points highlight the importance of thorough due diligence when making investment decisions in ZIP 78372.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.