Location: Starr County, TX | Metro: Starr County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 78548 presents several challenges for landlords and small-portfolio investors considering Section 8 properties. Firstly, tenant turnover is a significant concern, with the market rent at $791 being notably lower than the Fair Market Rent (FMR) of $1,060 for fiscal year 2026. This discrepancy can lead to frequent changes in occupancy as tenants who are not on vouchers may find it more economical to seek higher-quality housing that meets the FMR standards. The result is an increased administrative burden and potential revenue instability due to the constant need for tenant screening and lease renewals.
Vacancy exposure is another critical issue. The average days on market (DOM) for properties in this area is not available, which makes predicting how long a unit might remain vacant challenging. In a competitive rental market, even short vacancies can significantly impact cash flow. Moreover, the median income in ZIP 78548 stands at $37,308, indicating that many residents may struggle to afford market rents without assistance, further complicating the leasing process.
Deferred maintenance exposure is also a risk factor. Without specific data on typical home values, it's difficult to gauge the overall condition and potential repair costs of properties in the area. However, given the lower median income levels, there may be less financial capacity among homeowners to maintain their properties to a high standard, which could affect the quality of rental stock and the likelihood of receiving timely maintenance requests.
Despite these risks, the high concentration of renters—comprising 14.6% of the population—typically translates into robust demand for Section 8 vouchers. This high renter density can serve as a stabilizing force, ensuring a steady stream of potential tenants who qualify for federal assistance, thus reducing the risk of prolonged vacancies. Furthermore, the presence of numerous voucher holders can offset the challenges associated with lower market rents and higher turnover rates.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.