Location: Zavala County, TX | Metro: Zavala County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The ZIP code 78872, located in Zavala County, TX metro, can be a strategic fit for a Section 8 portfolio due to its characteristics as a cash-flow anchor. The Federal Market Rent (FMR) for the area in fiscal year 2026 is set at $970, which is significantly lower than the market rent of $2,125. This creates a substantial spread that benefits landlords who participate in the Section 8 program. By accepting Section 8 tenants, landlords can ensure a steady and reliable income stream, as the program guarantees payment up to the FMR, even if the market rent is higher.
The median home value in ZIP 78872 is $105,718, indicating a relatively affordable housing market. This makes it easier for landlords to acquire properties without requiring a large upfront investment, further enhancing the cash flow potential. With a lower FMR compared to market rents, landlords can leverage the difference to cover mortgage payments, maintenance costs, and other expenses, ensuring profitability and financial stability.
While ZIP 78872 does not present significant opportunities for appreciation plays, given the lack of data on price-cut shares and days on market (DOM), it still serves a valuable role in a diversified portfolio. The ZIP code has a 26.1% renter share, suggesting a moderate demand for rental properties. Additionally, the median income of $39,659 aligns well with the FMR, making it a suitable location for Section 8 participants who often have limited income resources.
In conclusion, ZIP 78872 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The $1,155 difference between the FMR and market rent ensures a consistent and predictable income source, crucial for landlords and small-portfolio investors looking to stabilize their earnings in a competitive rental market.
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.