Location: Starr County, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $99,903 | 1.01% | B |
| 3BR | $1,310 | $131,256 | 1% | C |
U.S. Census Bureau data (2024)
ZIP code 78595, located in Sullivan City, TX, is situated within the Starr County, TX metro area. The Fair Market Rent (FMR) for ZIP 78595 is set at $910 for fiscal year 2024, while the average market rent is $628. This indicates that the FMR is significantly higher than the actual market rent, suggesting a potential subsidy opportunity for landlords who participate in the Section 8 program.
The median home value in ZIP 78595 is $129,713, which is lower than many other ZIP codes in Starr County. This could indicate that 78595 is a value pocket within the metro area, offering opportunities for investors to acquire properties at relatively lower costs compared to the broader county.
The renter share in ZIP 78595 stands at 13.9%, which is noteworthy as it suggests a higher proportion of renters compared to some other areas in Starr County. A high renter share combined with below-average home values often points to a sweet spot for Section 8 investments, where rental subsidies can provide a steady stream of income.
In comparison to typical Starr County ZIP codes, ZIP 78595 appears to be a mid-tier neighborhood with a favorable balance of lower property values and a substantial renter population. However, the significant gap between the FMR and the market rent could make it particularly attractive for landlords seeking to benefit from the Section 8 program.
To summarize, ZIP 78595 is a value pocket within the Starr County metro due to its lower home values and higher renter share. The disparity between the FMR and market rent makes it a prime candidate for Section 8 investment opportunities, ensuring a reliable tenant base and potentially higher returns on investment.
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.