Location: Corpus Christi, TX | Metro: Corpus Christi, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
U.S. Census Bureau data (2024)
When considering whether to buy properties in ZIP code 78408 for Section 8 investment, follow these steps:
Step 1: Clear Debt Service
The Fair Market Rent (FMR) for ZIP 78408 in fiscal year 2024 is $1,140. To determine if this clears debt service on a property valued at $96,463, calculate your monthly mortgage payment and compare it to the FMR. For example, if you secure a loan with an interest rate of 4%, your monthly mortgage payment would be approximately $470. Given that $1,140 is significantly higher than $470, the answer is Yes: the FMR does clear the debt service.
Step 2: Market Rent Comparison
The average market rent in ZIP 78408 is $1,008 according to Census ACS data. Compare this figure to the FMR of $1,140. Since $1,008 is below the FMR, the answer is No: market rent is below the FMR, which means that relying solely on market rents might not cover the costs associated with a Section 8 investment.
Step 3: Rental Demand Assessment
In ZIP 78408, 55.0% of residents are renters. However, the Days on Market (DOM) information is not available. This lack of DOM data makes it challenging to assess the speed at which rental units become occupied. Despite this, the high percentage of renters suggests strong demand. Therefore, the answer is It Depends. While there is sufficient rental demand, the absence of DOM data introduces uncertainty about how quickly you can fill vacancies. Consider conducting additional research on local real estate trends to better understand the vacancy rates and time to occupancy.
If you decide to proceed based on the strong rental demand and acceptable FMR coverage, ensure you factor in the potential for lower market rents when setting your expectations for cash flow and profitability. Engage with local realtors and property management companies to gather more detailed insights into the rental market dynamics in ZIP 78408.
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.