Section 8 Fair Market Rent (FMR) for ZIP 78842 - 2027

FY 2027 Fair Market Rent Rates

The median family income in ZIP code 78842 is lower than the national average, which could lead some investors to question whether the Fair Market Rent (FMR) of $1,060 will sufficiently cover mortgage payments on a home in this area. However, the median home value in Del Rio, TX, is approximately $188,040, suggesting that a typical mortgage payment would be manageable at this FMR level.

A skeptical investor might also wonder if there is sufficient demand among renters to support investment in this ZIP code. With an estimated rent of $1,110 for a single-family home, the demand appears to be strong enough to support rental properties at the FMR of $1,060. The presence of affordable housing options indicates a market where lower-cost rentals are sought after, aligning with the FMR.

Another concern could be whether housing vouchers will keep pace with the local market rents. While the data does not provide specific figures for voucher amounts, the FMR of $1,060 suggests that the federal government recognizes the cost of living in this area. Investors should monitor local housing authority announcements for updates on voucher amounts.

In summary, despite initial skepticism regarding the ability of FMR to cover mortgage costs, support renter demand, and match voucher amounts, the available data points to a feasible investment scenario in ZIP code 78842. The median home values and rental rates suggest that properties priced around the FMR can attract tenants and generate income that covers mortgage expenses. However, ongoing monitoring of voucher amounts is recommended to ensure alignment with market rents.

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.