Location: McAllen-Edinburg-Mission, TX | Metro: McAllen-Edinburg-Mission, TX MSA
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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $133,490 | 0.84% | C |
| 3BR | $1,440 | $228,688 | 0.63% | D |
| 4BR | $1,580 | $347,338 | 0.45% | F |
| 5BR | $1,833 | $466,433 | 0.39% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 78539, located in Edinburg, TX, within the McAllen-Edinburg-Mission, TX MSA, reveals several key points for potential landlords and small-portfolio investors.
First, the rent math works favorably. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1040, which aligns closely with the market rent of $1,038 (ZORI). This parity suggests that properties priced near these figures will attract tenants without leaving significant revenue on the table.
Second, acquisition appears affordable. With a median home value of $244,061, the cost of entry into the market is relatively low compared to many other areas. Additionally, the average Days on Market (DOM) of 84 days indicates a moderate time frame for selling homes, and the 0.2% price-cut share suggests that most sellers do not have to reduce their asking price significantly to complete sales.
Third, there is a strong tenant demand. The population of 37,168 residents, combined with a 45.1% renter share, means that over 16,700 individuals are likely seeking rental housing. This substantial number of renters supports a robust market for rental properties.
Verdict: ZIP 78539 presents a favorable environment for real estate investment. The close alignment between FMR and ZORI ensures that rents are set appropriately, while the affordable median home value and moderate DOM indicate that property acquisition can be done effectively. Furthermore, the high renter share among the local population guarantees a steady stream of potential tenants, making this area attractive for those looking to invest in rental properties.
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.