Location: McAllen-Edinburg-Mission, TX | Metro: Brownsville-Harlingen, 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 | $900 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $124,244 | 0.92% | C |
| 3BR | $1,520 | $222,237 | 0.68% | D |
| 4BR | $1,640 | $267,557 | 0.61% | D |
U.S. Census Bureau data (2024)
970 is the Fair Market Rent (FMR) for ZIP code 78559, La Feria, TX, for fiscal year 2024, setting a clear benchmark for rental properties in the area. However, the Census ACS data reveals that the market rent stands at 1,038, indicating that landlords can charge slightly above the FMR without losing tenants. The median home value in the region is 182,990, which is relatively low compared to many other parts of Texas, making it an attractive option for first-time homebuyers and investors alike. With a 28.5% share of renters in the population, there is a significant demand for rental properties, supporting the viability of investment in this sector.
The median income of 49,383 suggests that residents have limited financial capacity to pay high rents, reinforcing the importance of pricing close to the FMR to remain competitive. Despite the relatively low median income, the low 0.2% price-cut share indicates that properties are generally well-priced and sell without needing to be discounted, which is a positive sign for real estate investors looking to maximize their returns.
Investors should note that the lack of available data on days on market (DOM) could imply either stable sales activity or an underreported metric. This ambiguity should be considered when evaluating the speed of property turnover in the area.
In conclusion, given the 970 FMR and the 1,038 market rent, coupled with the 28.5% renter share and the low median home value of 182,990, ZIP code 78559 presents a favorable environment for landlords and small-portfolio investors. The median income of 49,383 aligns with the affordability of the FMR, ensuring steady demand for rental properties. The 0.2% price-cut share further supports the idea that properties are priced appropriately and sell efficiently. For those interested in Section 8 housing, the region's data suggests it can be a viable option, but careful attention to tenant selection and property management will be necessary to ensure profitability.
Verdict: ZIP 78559 is suitable for Section 8 investments with proper management.
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.