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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $800 | $84,356 | 0.95% | C |
| 2BR | $1,010 | $130,121 | 0.78% | D |
| 3BR | $1,310 | $194,928 | 0.67% | D |
| 4BR | $1,440 | $323,290 | 0.45% | F |
| 5BR | $1,670 | $450,727 | 0.37% | F |
U.S. Census Bureau data (2024)
Mission, Texas (ZIP 78572) is a dynamic hub within the McAllen-Edinburg-Mission metropolitan area, offering investors a blend of border-economy vitality and suburban expansion. The city serves as a key gateway for international trade and agriculture, with Mission Regional Medical Center standing as a major local employer and a consistent draw for healthcare professionals who may prefer renting. This community benefits from a robust retail environment along Expressway 83, providing essential amenities that sustain long-term tenancy. The neighborhood character is defined by family-friendly sprawl and a growing demand for workforce housing, supported by a steady influx of residents drawn to the lower cost of living compared to national averages.
From a financial perspective, the data reveals a tangible spread for voucher landlords. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $1,050, while the current Zillow market rent estimate sits at $1,298, leaving a gap of $248 that Section 8 landlords must absorb or offset through other efficiencies. However, acquisition costs remain favorable, with a median home value of $197,758 and a specific median 2BR sale price of $131,133. Properties are moving at a moderate pace, with a median of 98 days on market, suggesting that investors have time to perform due diligence without facing extreme bidding wars for inventory.
The tenant pool is substantial, bolstered by a renter share of 29.0% and a median household income of $54,298. This income level often pushes working families toward rental affordability programs, creating consistent demand for subsidized units. Families are particularly attracted to the area for the Mission Consolidated Independent School District, which is generally recognized for solid performance, adding a layer of stability for long-term leases. Additionally, the region’s reliance on cross-border commerce and logistics ensures a steady stream of workers who need housing near major transit corridors and employers.
The Section 8 verdict for Mission 78572 leans heavily toward a cash-flow and stability play. While the gap between the $1,050 voucher and $1,298 market rent requires careful portfolio management, the low entry price of $131,133 for a 2BR home allows for favorable debt coverage ratios even at the FMR rate. Investors targeting this market should focus on acquiring properties below the median value to maximize yield, leveraging the high demand for affordable housing in a region where steady population growth supports occupancy rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.