Location: Medina County, TX | Metro: Medina County, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $217,220 | 0.62% | D |
| 3BR | $1,740 | $299,422 | 0.58% | F |
| 4BR | $1,900 | $404,703 | 0.47% | F |
U.S. Census Bureau data (2024)
1120 is the Fair Market Rent (FMR) for ZIP code 78861, Hondo, TX, as set by HUD for fiscal year 2024. This figure represents the maximum amount a landlord can charge for a Section 8 voucher in the area. In contrast, the market rent, according to the Census American Community Survey, is $1,391, indicating that landlords participating in the Section 8 program could see their rents capped below the local average. The median home value in the area is $261,335, suggesting a moderate housing market. With 25.3% of residents being renters, there's a notable demand for rental properties, but the renter share is not exceptionally high. The median income of $64,917 provides insight into the financial capabilities of potential tenants, which should be considered when setting rental criteria. Notably, the day DOM (days on market) and price-cut share figures are both N/A and 0.1%, respectively, hinting at a stable market where homes are typically sold without significant discounts or extended listing times.
The disparity between the FMR and the market rent highlights the trade-offs landlords must consider when choosing to participate in the Section 8 program. While the guaranteed payment from the government can offer stability, it also means accepting a lower rent compared to what the market might bear. The relatively low median income of $64,917 suggests that many potential tenants would likely qualify for the program, making it an attractive option for those seeking consistent, government-backed rental income.
A key consideration for small-portfolio investors is the balance between the guaranteed income and the administrative requirements of the Section 8 program. Given the median home value of $261,335 and the moderate renter share of 25.3%, investing in this area through Section 8 could provide a solid return while minimizing risk associated with vacancy or non-payment. The negligible price-cut share of 0.1% further supports the idea that the housing market in Hondo, TX, is steady and not prone to sudden drops in property values.
In conclusion, for landlords and small-portfolio investors looking to enter the Hondo, TX, market, the Section 8 program presents a viable option for securing stable rental income, albeit at a rate slightly below the local market average. The verdict: Section 8 participation in ZIP 78861 is a sound investment strategy given the local economic conditions and housing market stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.