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 | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $96,178 | 1.05% | B |
| 3BR | $1,310 | $157,838 | 0.83% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 78560, which includes La Joya, TX, stands at $55,721. Considering the market rate for rent is $879 according to the Census ACS, it becomes evident that the average household faces significant challenges in affording housing. This struggle is further highlighted when comparing the market rate to the Fair Market Rent (FMR) set at $910 for the fiscal year 2024. The FMR represents the maximum amount that a household receiving a housing voucher can be expected to pay, which is only slightly above the market rate.
The fact that 46.8% of the 4,635 residents are renters underscores the importance of affordability. Given the tight margins between median income and rental costs, many households may find themselves in a position where they can barely cover their rent expenses. This situation creates a notable affordability gap, meaning that a substantial portion of the renting population may rely on assistance programs such as housing vouchers to meet their living needs.
The competition among landlords in ZIP 78560 is likely influenced by the affordability gap. Landlords who accept housing vouchers may have an edge over those who do not, as voucher recipients will seek affordable housing options. However, the difference between the market rate and the FMR is minimal, suggesting that landlords should carefully weigh the benefits and drawbacks of accepting vouchers versus relying solely on cash-paying tenants.
For landlords considering their strategy, the key takeaway is that while the demand for affordable housing is high, the financial incentive to accept vouchers is limited due to the close alignment of the FMR and market rates. Accepting vouchers can ensure steady rental income but may also introduce additional administrative complexities. In contrast, focusing on cash-paying tenants could offer higher returns if the landlord can attract a segment of the population with higher incomes or those willing to pay a premium for certain amenities or location advantages.
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.