Location: Willacy County, TX | Metro: Willacy County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The ZIP code 78561 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1,000 for FY 2026. This gap can lead to higher turnover rates as tenants might seek more affordable housing options outside the FMR range.
Vacancy exposure is another risk factor. With no data available on days on market (DOM), it's unclear how long properties may remain vacant. High vacancy periods can strain cash flow, especially if maintenance issues arise that require immediate attention and funds.
The deferred-maintenance exposure is substantial given the typical home value of $136,573 and the median income of $102,528. Landlords must be prepared to invest in property upkeep, as the income level suggests residents may have limited funds for repairs and maintenance. This responsibility falls on the landlord, potentially increasing operational costs.
However, these risks are somewhat mitigated by the high renter share of 17.1%. High renter density typically correlates with higher demand for rental assistance vouchers, which can stabilize occupancy and reduce the impact of vacancy periods. The presence of a large number of renters also indicates a robust market for rentals, even under government subsidy programs.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 78561 is moderate. While there are notable risks associated with tenant turnover and maintenance, the high renter share provides a buffer against prolonged vacancies and offers a stable tenant pool through voucher programs.
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.