Section 8 Fair Market Rent (FMR) for ZIP 78610 - 2027

Investment Score for ZIP 78610

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	$1,510
1 Bedroom	$1,590
2 Bedrooms	$1,890
3 Bedrooms	$2,380
4 Bedrooms	$2,800
5 Bedrooms	$3,248
6 Bedrooms	$3,638
7 Bedrooms	$3,929
8 Bedrooms	$4,125

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
3BR	$2,380	$328,118	0.73%	D
4BR	$2,800	$387,786	0.72%	D
5BR	$3,248	$496,455	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78610, TX #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78610 in 2026 is set at specific rates for different bedroom sizes. For a 2-bedroom unit, the FMR is $1880, which represents 18.8% of the median household income of $119,698. This suggests that the rent for a 2-bedroom unit is relatively affordable compared to the local income levels. However, without recent Zillow data, it's challenging to determine how these FMRs compare to actual market rents. Typically, if the actual market rents exceed the FMR, tenants with Section 8 vouchers might struggle to find suitable housing, leading to constraints on their ability to move into higher-cost areas. #### Affordability & Renter Profile ZIP 78610 has a population of 48,319, with 21.2% of residents being renters. The occupancy rate stands at 98%, indicating a very tight rental market where almost all available units are occupied. Given the high median household income of $119,698, the typical renter profile likely includes individuals or families who are financially stable but still benefit from the affordability provided by Section 8 vouchers. The high occupancy rate also suggests that there is little room for new units to enter the market without immediate demand. #### Investor Angle From an investor perspective, the ZIP code's high occupancy rate and median income level make it attractive for rental investments. However, the lack of recent Zillow data means we cannot accurately assess the current market rents. Assuming that the actual market rents align closely with the FMRs, an investor could expect the following cash flows: - A 2-bedroom unit at $1880 would be within the affordability range for many residents, making it a viable option for Section 8 tenants. - If the actual market rents are higher than the FMRs, investors might face challenges in finding tenants willing to accept the lower voucher rates. Given the high median income, it's possible that market rents are above the FMRs, especially for larger units like 3BR and 4BR. This would mean that Section 8 voucher holders might have difficulty securing such units, potentially limiting the pool of potential tenants for larger properties. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units (0BR, 1BR, 2BR) since they are more likely to be within the FMR range and thus more accessible to Section 8 voucher holders. For example, a 2BR unit at $1880 would be a good fit for this market, given the high median income and tight rental market. 2. **Consider Upsizing**: If you already own larger units (3BR, 4BR) in the area, consider converting them into multiple smaller units to better match the FMRs and attract Section 8 tenants. This could involve subdividing larger units into smaller apartments or creating additional living spaces. 3. **Monitor Local Rental Prices**: Although we don't have recent Zillow data, monitoring local rental prices through other sources can provide valuable insights into whether the actual market rents are above or below the FMRs. This will help in determining the feasibility of attracting Section 8 tenants and adjusting investment strategies accordingly. #### Bottom Line Given the high occupancy rate and median income, ZIP code 78610 presents a challenging environment for Section 8-focused investors. The tight rental market and potential mismatch between FMRs and actual market rents suggest that investors should proceed with caution. **Recommendation**: **Hold**. Investors should hold off on purchasing larger units until they can confirm that actual market rents align with the FMRs. Focusing on smaller units or considering conversions might be more prudent. However, the overall attractiveness of the area due to its high income levels and low vacancy rates makes it a strong market for general rental investments.

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.