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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $85,575 | 1.19% | B |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 78549 in Hargill, TX, under the Section 8 program are significant. Tenant turnover is a critical issue, with the Fair Market Rent (FMR) for fiscal year 2024 set at $920. This figure is indicative of the rental market's standards, but without specific market rent data, it's challenging to gauge how competitive this makes properties. Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This lack of information means landlords cannot accurately predict how long their units might remain vacant between tenancies.
Deferred maintenance is also a notable risk factor. With a typical home value of $96,821 and a median household income of $19,222, residents may struggle to afford necessary repairs and upgrades. Landlords must be prepared to handle these costs, which can significantly impact the overall financial health of their investments. The lower income levels suggest that tenants may rely heavily on Section 8 vouchers, which can sometimes lead to delays in payment processing and administrative burdens.
However, there are mitigating factors that reduce some of these risks. The renter share of the housing market in ZIP 78549 stands at 10.5%, indicating a relatively high concentration of renters. High renter density often correlates with higher demand for Section 8 vouchers, which can provide a stable stream of rental income. Despite the challenges, the presence of a substantial number of renters suggests a robust market for subsidized housing, potentially offsetting the risks associated with tenant turnover and vacancy rates.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.