Section 8 Fair Market Rent (FMR) for ZIP 78573 - 2027

Investment Score for ZIP 78573

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: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$800	$125,260	0.64%	D
2BR	$1,010	$126,495	0.8%	D
3BR	$1,310	$204,629	0.64%	D
4BR	$1,440	$325,806	0.44%	F
5BR	$1,670	$570,392	0.29%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78573 (Alton, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78573 (Alton, TX) in 2026 indicate that the rental rates for various unit sizes are as follows: - 0BR: $790 - 1BR: $800 - 2BR: $1000 - 3BR: $1300 - 4BR: $1440 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that the actual rents in the area might be higher than these FMRs. For instance, the Zillow median price for a 2BR property is $129,322, which translates into a significant rental cost considering typical mortgage payments and maintenance costs. The price-to-FMR ratio of 10.8x suggests that the actual rental prices are considerably higher than the FMRs, creating a potential constraint for voucher holders who might struggle to find affordable units within their budget. #### Affordability & Renter Profile ZIP code 78573 has a population of 44,809, with 34.0% of residents being renters. This indicates a substantial demand for rental properties. The occupancy rate of 89.9% suggests that the market is relatively tight, with most available units being occupied. Given the median household income of $55,000, the affordability of housing becomes a critical issue. The 2BR FMR of $1000 represents 21.8% of the median income, which is a reasonable percentage but still leaves little room for other expenses. Therefore, the renters in this area are likely to be low-income families who rely heavily on assistance programs like Section 8 to afford housing. #### Investor Angle From an investor perspective, the ZIP code 78573 presents both opportunities and challenges. The high price-to-FMR ratio of 10.8x implies that the actual rental prices are significantly above the FMRs. This means that while there is a strong demand for rental properties, the potential for cash flow positive investments at the FMR level is limited. Investors would need to consider the broader rental market dynamics and the willingness of tenants to pay above the FMR to achieve positive cash flows. The investment grade in this ZIP code would depend on the ability to secure tenants willing to pay market rates, which are much higher than the FMRs. For example, a 2BR unit priced at the Zillow median of $129,322 would likely generate a monthly rental income well above $1000. However, this also means that the investor would need to manage the risk associated with a potentially volatile rental market and the possibility of having a mix of tenants, including those who are not eligible for Section 8 vouchers due to the higher rents. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Given the high price-to-FMR ratio, investors should focus on acquiring properties that can be rented below the FMR. This could involve purchasing distressed properties or negotiating lower rents with landlords. For instance, a 2BR unit priced at $1000 per month would be ideal for Section 8 voucher holders and would ensure steady cash flow. 2. **Consider Multi-family Properties**: Multi-family properties often have economies of scale that can help reduce overall costs. A building with multiple units, such as 3BR or 4BR apartments, could be rented out at FMR levels, providing a stable income stream for investors. For example, renting a 3BR unit at $1300 per month would be within the FMR limit and could attract families looking for larger living spaces. 3. **Diversify Tenant Mix**: To mitigate risks, investors should consider diversifying their tenant mix. While targeting Section 8 voucher holders is a key strategy, including tenants who can pay market rates will provide a more balanced portfolio. This approach can help stabilize cash flows and reduce dependency on government subsidies. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **skip** this ZIP code unless they can secure properties at or below the FMR levels. The current rental prices are too high to ensure a positive cash flow when relying solely on Section 8 vouchers. Investors should look for areas where the actual rental prices are closer to the FMRs or explore strategies to lower the acquisition costs of properties in this ZIP code. --- This analysis provides a detailed overview of the rental market dynamics, affordability issues, and investment considerations for ZIP code 78573 based on the provided data. It highlights the challenges faced by both renters and investors in this market and offers specific insights to navigate these complexities effectively.

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.