Section 8 Fair Market Rent (FMR) for ZIP 78764 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 78764 in Unknown, TX, highlights several critical issues that could affect Section 8 landlords. First, tenant turnover poses a significant challenge due to the discrepancy between market rent and the Fair Market Rent (FMR) set at $1950 for FY 2024. Landlords might struggle to find tenants willing to pay the FMR if the local market rent is lower, leading to frequent changes in occupancy.

Vacancy exposure is another concern, especially since the average days on market (DOM) for rental properties in this area is unknown. This uncertainty makes it difficult to predict how long a property might remain vacant, which can significantly impact cash flow and overall profitability.

Deferred maintenance is also a risk factor, particularly when the typical home value and median income in the area are not specified. Without these figures, it's challenging to assess the financial capacity of residents to maintain their homes adequately, potentially resulting in higher repair costs and maintenance demands for landlords.

Despite these risks, the high proportion of renters in ZIP 78764 suggests strong demand for rental properties, including those that accept Section 8 vouchers. A dense population of renters typically translates into a higher number of individuals seeking housing through government assistance programs, thereby increasing the likelihood of finding stable, long-term tenants who can afford the $1950 FMR.

Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 78764, Unknown, TX.

Data Sources: FMR data from HUD (2027).

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.