Section 8 Fair Market Rent (FMR) for ZIP 78582 - 2027

Investment Score for ZIP 78582

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	$780
1 Bedroom	$790
2 Bedrooms	$1,030
3 Bedrooms	$1,430
4 Bedrooms	$1,490
5 Bedrooms	$1,728
6 Bedrooms	$1,935
7 Bedrooms	$2,090
8 Bedrooms	$2,195

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
3BR	$1,430	$202,533	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78582, TX #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78582 in 2026 indicate that the rental market is relatively affordable compared to other areas in Texas. The FMRs are as follows: - 0BR: $740 - 1BR: $750 - 2BR: $980 (which is 27.6% of the median household income) - 3BR: $1360 - 4BR: $1500 However, without recent Zillow data, it is challenging to directly compare these FMRs to actual market rents. Typically, FMRs are set to reflect the 40th percentile of gross rents for standard quality rental units, meaning that 40% of the units in the area rent for less than the FMR. This suggests that while some units may be priced below the FMR, others could be higher, potentially creating challenges for voucher holders who are constrained by the FMR limits. #### Affordability & Renter Profile The median household income in ZIP 78582 is $42,626, which indicates a moderate-income population. Given that 27.7% of households are renters, there is a significant segment of the population relying on rental housing. The occupancy rate of 85.9% suggests that the rental market is fairly tight, with most available units being occupied. Considering that a 2BR unit at $980 represents 27.6% of the median income, it implies that a substantial portion of the renters in this ZIP code must allocate a significant amount of their income towards housing. This makes the rental market sensitive to economic changes and highlights the importance of affordability for residents. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. To determine this, we need to consider typical expenses such as mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 30% of the FMR for expenses, the cash flow would look like this: - 0BR: $740 - 30% = $518 - 1BR: $750 - 30% = $525 - 2BR: $980 - 30% = $686 - 3BR: $1360 - 30% = $952 - 4BR: $1500 - 30% = $1050 Given these figures, a 2BR or larger unit would likely provide positive cash flow, assuming the expenses are accurately estimated. However, the smaller units (0BR and 1BR) might struggle to cover costs, especially if expenses exceed the 30% estimate. The investment grade for this ZIP code would depend on the local real estate market conditions, including vacancy rates, property values, and competition. With an occupancy rate of 85.9%, there is a strong demand for rental units, which could support higher property values and lower vacancy rates. However, the lack of recent Zillow data prevents us from making a precise assessment of current market trends. #### Specific Actionable Insights 1. **Focus on Larger Units**: Investors should focus on acquiring 2BR or larger units, as they are more likely to generate positive cash flow. For instance, a 2BR unit renting at $980 would leave a net of $686 after expenses, which is a reasonable margin for investment purposes. 2. **Consider Location-Specific Factors**: Since the rental market appears to be tight, investors should consider factors such as proximity to employment centers, schools, and amenities. These factors can influence the desirability of a unit and potentially allow for rents slightly above the FMR, thus improving cash flow. 3. **Evaluate Property Condition**: Given the constraints of FMR, properties that require extensive renovations might not be viable investments unless the improvements significantly increase the rental value. Investors should prioritize well-maintained properties that can be rented close to the FMR without requiring major repairs. #### Bottom Line Based on the provided data, ZIP code 78582 presents a mixed picture for Section 8-focused investors. While the rental market is tight and there is a significant segment of the population reliant on rental housing, the lack of recent market data makes it difficult to assess the exact rental price dynamics. Investors should proceed cautiously and focus on larger units (2BR or more) that are more likely to generate positive cash flow. Additionally, careful consideration of location-specific factors and property condition will be crucial in ensuring a successful investment. **Recommendation**: Hold. Wait for more recent market data before making any significant investment decisions. If you already own properties in this ZIP code, maintaining them and keeping rents competitive with FMR levels would be advisable.

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.