Section 8 Fair Market Rent (FMR) for ZIP 78578 - 2027

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

Investment Score for ZIP 78578

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$229,569
1% Rule
0.44%
Annual Yield
5.28%

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
1BR $860 $168,729 0.51% F
2BR $1,010 $229,569 0.44% F
3BR $1,370 $345,705 0.4% F
4BR $1,470 $490,458 0.3% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
10,016
Median Household Income
$51,880
Housing Units
6,480
Renter Percentage
25.4%
Occupancy Rate
67.6%
Renter Occupied
1,111

910 FMR (zip FY 2024) indicates the Fair Market Rent set for ZIP code 78578, Port Isabel, TX, which stands as a benchmark for rental properties eligible under the Section 8 program. 749 market rent (Census ACS) reflects the actual average rent paid by tenants in the area, underscoring a significant gap between the two figures. This disparity means landlords participating in Section 8 can potentially receive higher rents compared to the local market. The median home value of 262,834 suggests a relatively stable housing market, although it does not directly impact rental investments. With a 25.4% renter share, the population leans towards renting, making rental properties a viable investment option. However, the median income of 51,880 might limit the pool of potential tenants who qualify for Section 8 assistance. Despite the lack of available data on days on market (DOM), the 0.2% price-cut share reveals that few properties are being discounted, indicating a strong demand for rentals without significant price adjustments.

The combination of a favorable FMR relative to the market rent and a notable renter share makes ZIP code 78578 an attractive location for Section 8 investments. Landlords can benefit from guaranteed rental payments through the voucher program, which often exceed the current market rates. Additionally, the low price-cut share suggests a competitive market where maintaining rental rates is feasible. Although the median income is modest, it aligns well with the income levels of those likely to seek Section 8 assistance. Therefore, the verdict for Section 8 investments in Port Isabel, TX, is positive, given the potential for stable cash flow and minimal risk of vacancy.

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.