Section 8 Fair Market Rent (FMR) for ZIP 78607 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$820
1 Bedroom	$860
2 Bedrooms	$1,080
3 Bedrooms	$1,480
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, the analysis of the Section 8 program in ZIP 78607 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 78607 in metro FY 2026 is set at $1,020. However, the market rent data is not available, which suggests that the market rent could be higher than the FMR, given the context of the area.

The median household income in ZIP 78607 is $58,594, and 32.0% of residents are renters. The median home value is $472,400, indicating a relatively affluent area. Given these conditions, landlords and small-portfolio investors must understand the implications of the FMR being lower than the potential market rent.

• If FMR is indeed lower than the market rent: Accepting Section 8 voucher tenants means accepting a rate below the open-market rental rates. This can be a strategic move if the goal is to secure long-term, stable tenancy. However, it also implies a lower yield on investment properties. The difference between the FMR and market rent could result in a substantial reduction in rental income, potentially making properties less attractive to landlords looking for maximum returns.

To accurately assess the financial impact, landlords need to know the exact market rent. Without this figure, it's challenging to quantify the precise gap in dollars and percent. Nonetheless, it's clear that operating below market rates due to Section 8 vouchers can affect profitability. Investors should consider the broader economic context, including the stability of government funding and the potential for increased occupancy rates, which can offset lower rents.

Given the limited data on market rent, further research into recent rental listings or local real estate trends would provide a clearer picture of the actual market conditions in ZIP 78607. This would allow for a more precise calculation of the gap and a better understanding of the yield implications for properties participating in the Section 8 program.

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.