Section 8 Fair Market Rent (FMR) for ZIP 78851 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor considering ZIP 78851 might raise several valid concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these concerns with the available data.

• Will FMR $1,020 (metro FY 2026) cover the mortgage on a home? The data provided does not include the average home price in ZIP 78851, which is necessary to calculate the potential mortgage payment. However, the Fair Market Rent (FMR) of $1,020 can be compared against typical mortgage payments in similar areas. If the average mortgage payment is higher than this amount, it could indicate that the FMR alone will not be sufficient to cover all expenses associated with owning a property under the Section 8 program.
• Is there enough renter demand at 0.0%? The data suggests that there is currently no reported demand percentage for Section 8 renters in ZIP 78851. This absence of data makes it challenging to assess the level of interest from potential tenants. To make an informed decision, it would be advisable to conduct additional research into local housing trends and contact local housing authorities to understand the demand dynamics in the area.
• Will vouchers keep pace with market rents? The data does not provide information on the specific voucher amounts or how they have changed over time relative to market rents in ZIP 78851. Without this information, it's difficult to determine if the voucher program will continue to cover the costs associated with renting out a property. Historically, voucher amounts have sometimes lagged behind rising market rents, so ongoing monitoring of both voucher levels and market conditions will be crucial.

In conclusion, while the FMR of $1,020 provides a baseline for what tenants can pay, the lack of specific data on home prices, renter demand percentages, and historical voucher trends means that some key questions remain unanswered. Landlords and small-portfolio investors should consider these gaps when evaluating the viability of investing in ZIP 78851 through 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.