Location: Corpus Christi, TX | Metro: Corpus Christi, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP 78404 might have several concerns regarding the feasibility of investing in Section 8 properties. Here are some key objections and the data to address them.
The Fair Market Rent (FMR) for ZIP 78404 in fiscal year 2024 is set at $1230. This figure represents the amount that a tenant could reasonably expect to pay for a rental property. To determine if this will cover the mortgage on a home priced at $155,792, we need to consider the typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly mortgage payment would be approximately $740. Therefore, the FMR of $1230 is sufficient to cover the mortgage, leaving a buffer of $490 per month for maintenance, taxes, and other expenses.
The renter occupancy rate of 43.2% suggests that slightly less than half of the housing units in ZIP 78404 are rented. While this percentage is relatively low, it does not necessarily indicate a lack of demand. The number of renters can still support Section 8 investments, especially considering the stability that government-subsidized tenants provide. However, the data does not specify the total number of units or the exact number of renters, which would give a clearer picture of the demand landscape.
The market rent for ZIP 78404 is $1,402, which is higher than the FMR of $1230. This discrepancy raises questions about whether voucher amounts will adjust to match the rising market rents. According to HUD guidelines, voucher amounts are periodically adjusted to reflect changes in the local housing market. However, the data does not provide specific details on when the last adjustment was made or the projected adjustments for the upcoming period. It's prudent to monitor local HUD announcements for updates on voucher payment standards.
In conclusion, while the data provides a snapshot of the financial viability of Section 8 investments in ZIP 78404, it is essential to continuously track local market conditions and government policies to ensure sustained profitability.
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.