Section 8 Fair Market Rent (FMR) for ZIP 78570 - 2027

Location: McAllen-Edinburg-Mission, TX | Metro: Brownsville-Harlingen, TX MSA

Investment Score for ZIP 78570

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$94,333

1% Rule

1.07%

Annual Yield

12.85%

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	$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

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
1BR	$800	$79,355	1.01%	B
2BR	$1,010	$94,333	1.07%	B
3BR	$1,310	$158,248	0.83%	C
4BR	$1,440	$227,517	0.63%	D
5BR	$1,670	$324,339	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

34,348

Median Household Income

$41,965

Housing Units

10,699

Renter Percentage

25.8%

Occupancy Rate

85.6%

Renter Occupied

2,367

The ZIP code 78570, located in Mercedes, Texas, is a small community that offers unique opportunities for real estate investors, particularly those interested in Section 8 housing. The area's economic profile and rental market dynamics present a mix of challenges and rewards for landlords and small-portfolio investors.

Fair Market Rent (FMR) for ZIP 78570: The FMR for 2024 is set at $910, which is the maximum amount that a Section 8 voucher holder can use to cover rent in the area.
Market Rent: According to the latest Census ACS data, the average market rent in the area is $803, indicating a potential gap between what the government will subsidize and what tenants might actually pay.
Median Home Value: The median home value stands at $141,027, reflecting a modest price range for properties in the area.
Renter Share: 25.8% of the population are renters, suggesting a significant portion of the community relies on rental housing.
Median Income: The median household income in the area is $41,965, which is below the national average, making affordable housing options crucial for residents.

Investors looking to enter the Mercedes, TX, market should consider the relatively low median home values and the significant percentage of renters when evaluating potential investments. The disparity between the Fair Market Rent and the actual market rent presents an opportunity for landlords to secure steady, government-backed income through Section 8 tenants while potentially charging slightly above the FMR. However, the lower median income suggests a need for affordable housing solutions, aligning well with the Section 8 program. This balance makes ZIP 78570 a viable option for those willing to cater to the needs of a predominantly low-income tenant base, ensuring a stable investment with predictable returns.

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.