Section 8 Fair Market Rent (FMR) for ZIP 78552 - 2027

Investment Score for ZIP 78552

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$970
1 Bedroom	$1,040
2 Bedrooms	$1,220
3 Bedrooms	$1,630
4 Bedrooms	$1,750
5 Bedrooms	$2,030
6 Bedrooms	$2,274
7 Bedrooms	$2,456
8 Bedrooms	$2,579

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$160,609	0.76%	D
3BR	$1,630	$236,829	0.69%	D
4BR	$1,750	$345,699	0.51%	F
5BR	$2,030	$487,189	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78552 (Harlingen, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Harlingen, TX, as of 2026, indicate that the rent for a two-bedroom apartment is set at $1190. This represents approximately 20.5% of the median household income of $69,811. However, the actual median rent for a two-bedroom unit on Zillow is significantly higher at $159,718, resulting in a price-to-FMR ratio of 11.2x. This means that the actual rental prices in the market are much higher than what the government considers fair for voucher holders. For instance, a voucher holder would struggle to find a two-bedroom apartment within their budget since the actual median rent is over eleven times the FMR. The constraints for voucher holders are thus quite significant, as they would need to either find properties below the FMR or negotiate with landlords who accept vouchers at rates closer to the FMR. #### Affordability & Renter Profile In Harlingen, 24.7% of the population are renters, which suggests a moderate demand for rental housing. With a median household income of $69,811, the affordability of housing is a critical issue for many residents. Given that the FMR for a two-bedroom apartment is $1190, which is already a substantial portion of the median income, it becomes clear that the market is tight and potentially unaffordable for a large segment of the population. The occupancy rate of 85.7% indicates that most units are occupied, suggesting a relatively balanced market but also pointing towards limited availability of affordable units. The high price-to-FMR ratio further underscores the challenge for low-income renters to find suitable accommodation within their budget. #### Investor Angle From an investor’s perspective, the ZIP code 78552 presents a mixed picture. While the actual rental prices are high, the FMR levels are lower and may not be sufficient to cover the costs of maintaining and managing rental properties. For example, a two-bedroom property priced at the FMR of $1190 would likely result in negative cash flow if the investor needs to charge closer to the actual median rent of $159,718 to remain competitive. The investment grade in this area would depend heavily on the ability to secure tenants willing to pay the FMR or to find ways to increase the value of the property through renovations or location advantages. Given the high price-to-FMR ratio, investors should carefully consider the potential for attracting voucher holders and the associated challenges. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $980, which is still a fraction of the median household income. This could make it easier to attract tenants who are eligible for Section 8 vouchers while maintaining a reasonable level of cash flow. 2. **Location-Specific Pricing**: Investors should look into neighborhoods where rental prices are closer to the FMR. This could involve analyzing micro-markets within Harlingen to identify areas with lower rental prices. For instance, certain parts of the city might have rental prices that are more aligned with the FMR, making them more attractive for Section 8 voucher holders. 3. **Government Programs and Incentives**: Engage with local government programs and incentives designed to support affordable housing. These programs can help offset some of the financial burdens associated with renting at FMR levels. Additionally, understanding the local regulations around accepting Section 8 vouchers can provide valuable insights into the operational aspects of managing such properties. #### Bottom Line For Section 8-focused investors, the ZIP code 78552 presents a challenging environment due to the high price-to-FMR ratio. The recommendation would be to **Skip** this market unless there are specific strategies in place to mitigate the risks associated with low rental income relative to actual market prices. If investors decide to proceed, they should focus on smaller units and carefully select locations where rental prices are more aligned with the FMR to ensure a positive cash flow.

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.