Location: Starr County, TX | Metro: McAllen-Edinburg-Mission, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The ZIP code 78563 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, as the market rent is not available but the Fair Market Rent (FMR) for the area is set at $980 for FY 2024. This can lead to higher costs associated with frequent turnovers, such as cleaning and repairs, which can impact profitability.
Vacancy exposure is another issue. With no data on days on market (DOM), it's difficult to predict how long a property might remain vacant between tenants. This uncertainty can result in lost rental income and increased financial pressure on the landlord.
Deferred maintenance poses a threat due to the lack of specific data on typical home values and median incomes. Without these figures, it's hard to assess the ability of residents to maintain properties adequately, potentially leading to costly repairs over time.
However, the risks are tempered by the high renter share of 12.0%. High renter density typically indicates a robust demand for rental housing, including those seeking assistance through housing vouchers. This can help ensure that there is a steady pool of potential tenants who qualify for Section 8.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.