Section 8 Fair Market Rent (FMR) for ZIP 78566 - 2027

Location: Brownsville-Harlingen, TX | Metro: Brownsville-Harlingen, TX MSA

Investment Score for ZIP 78566

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$160,750

1% Rule

0.63%

Annual Yield

7.54%

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	$800
1 Bedroom	$860
2 Bedrooms	$1,010
3 Bedrooms	$1,370
4 Bedrooms	$1,470
5 Bedrooms	$1,705
6 Bedrooms	$1,910
7 Bedrooms	$2,063
8 Bedrooms	$2,166

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,010	$160,750	0.63%	D
3BR	$1,370	$245,617	0.56%	F
4BR	$1,470	$340,533	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,110

Median Household Income

$60,187

Housing Units

8,244

Renter Percentage

25.0%

Occupancy Rate

87.8%

Renter Occupied

1,809

To determine if you should buy in ZIP code 78566 (Los Fresnos, TX) for Section 8 investments, follow these steps:

Step 1: Can the Fair Market Rent (FMR) of $980 cover the debt service on a property priced at $220,470?

If Yes: Proceed to Step 2.
If No: Do not invest in this area as the FMR does not sufficiently cover the cost of the property.

Step 2: Compare the market rent of $891 (from Census ACS data) with the FMR of $980.

If Market Rent is Below FMR: The area is favorable for Section 8 investments since tenants can pay close to the market rate, reducing financial risk.
If Market Rent is Equal to FMR: This indicates that the market rent aligns perfectly with the FMR, which is ideal but requires careful consideration of other factors such as tenant demand.
If Market Rent is Above FMR: Consider the potential for higher returns outside of Section 8 programs, but be aware that Section 8 investments will be less profitable.

Step 3: Assess the rental demand in the area. With 25.0% of residents being renters and the days on market (DOM) status being "N/A," indicating either a very strong or stable rental market, there is sufficient demand.

If Demand is Strong: Invest in ZIP 78566, as the combination of adequate FMR coverage and strong rental demand makes it a viable option.
If Demand is Stable: It depends on your investment strategy. If you seek stability over high returns, ZIP 78566 could still be a good choice.
If Demand is Weak: Do not invest in this area, as low demand would make it difficult to fill properties with Section 8 tenants.

The decision to invest in ZIP 78566 hinges on these key factors. Ensure that the FMR of $980 can support the debt service on a property costing $220,470, compare the FMR against the market rent of $891, and evaluate the strength of the rental demand. A positive outcome on all fronts suggests a favorable environment for Section 8 investments.

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.