Location: Real County, TX | Metro: Edwards County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
The analysis for ZIP code 78828 reveals some limitations due to incomplete data, particularly regarding median home values and current market rents. However, we can still provide a preliminary assessment based on the available information.
The Fair Market Rent (FMR) for a 2-bedroom apartment in ZIP 78828 for fiscal year 2026 is set at $1,030 annually. This figure represents the federal guideline for determining the maximum rental assistance payment for Section 8 housing in the area. To calculate the gross yield for a property participating in the Section 8 program, we need to estimate the annual rent revenue and compare it against the median home value.
Unfortunately, the median home value for ZIP 78828 is currently unavailable. Without this critical piece of data, it's challenging to derive an accurate cap rate for properties renting under the Section 8 program. The cap rate is calculated by dividing the net operating income (NOI) by the current market value of the asset. In this case, we would use the annualized FMR as a proxy for NOI, but without knowing the median home value, we cannot complete this calculation.
Similarly, the market rent for 2-bedroom apartments in ZIP 78828 is also not available. If the market rent were higher than the FMR, it would imply that the gross yield for a landlord accepting Section 8 tenants might be lower compared to market-rate rentals. Conversely, if the market rent were close to or below the FMR, the gross yield would be more favorable for Section 8 participation.
The lack of data on renter density and days on market (DOM) further complicates the analysis. Renter density can affect the demand for rental properties, while DOM provides insight into how quickly properties are leased. These factors influence the overall attractiveness of the rental market and the potential risks and rewards for landlords.
In conclusion, while the FMR for a 2-bedroom apartment in ZIP 78828 is $1,030 per month, the absence of median home value and market rent figures makes it impossible to accurately calculate the cap rate or compare the gross yields between Section 8 and market-rate rentals. Landlords should seek additional local market data to make informed decisions about participating in the Section 8 program.
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.