Section 8 Fair Market Rent (FMR) for ZIP 78588 - 2027
Location: Starr County, TX | Metro: Starr County, TX
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$94,821
When considering whether to invest in ZIP code 78588 for Section 8 properties, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a typical property?
- No. The FMR does not clear the debt service on a property in ZIP 78588 due to the lack of specific data on average debt service costs. This indicates that relying solely on Section 8 vouchers might not be financially viable.
- 2) How does the market rent of $520 compare to the FMR?
- Below. The market rent is significantly lower than the FMR, suggesting that properties in this area could potentially be rented out to non-Section 8 tenants at a higher rate than what is currently being charged. This implies that there might be better opportunities outside of Section 8.
- 3) Is there sufficient rental demand with 34.3% of residents renting and an unknown number of days on the market (DOM)?
- It depends. With over a third of the population renting, there is notable demand. However, without specific DOM data, it's unclear how quickly properties can be leased. If the DOM is low, indicating quick leasing, then the demand is likely strong enough. Otherwise, it might not be.
Decision: Based on the provided data, landlords should carefully consider their options before investing in ZIP 78588 for Section 8 properties. The FMR does not sufficiently cover the debt service, and the market rent is notably below the FMR, suggesting potential for higher rents outside of Section 8. Rental demand appears strong but requires further investigation into the DOM to make a definitive decision.
Data Sources: FMR data from HUD (2027). 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.