Location: Uvalde County, TX | Metro: Uvalde County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 78881 in Uvalde County, Texas, reveals several key points regarding its viability for Section 8 real estate investment.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980. However, the current market rent, as per the Census ACS, stands significantly lower at $556. This indicates that the rent math does not work favorably for landlords seeking to maximize income through Section 8 contracts in this ZIP code.
Regarding the affordability of acquisitions, the median home value in ZIP 78881 is $157,498. With no data available on days on market (DOM) or the percentage of homes that have been listed with a price cut, it's challenging to provide a comprehensive assessment. Nonetheless, the median home value suggests that property acquisition could be relatively affordable compared to other areas in the state.
The third point examines tenant demand. The population of ZIP 78881 is 1,283, with a renter share of 22.3%. This implies that there are approximately 287 potential renters in the area. While the number of renters is modest, it provides a steady pool of tenants for those willing to enter the market.
In summary, while ZIP 78881 offers an affordable entry point for property acquisition with a median home value of $157,498, the significant disparity between the Fair Market Rent ($980) and the actual market rent ($556) makes the rent math unappealing. The presence of 287 potential renters ensures a manageable tenant base but does not offset the financial inefficiencies of the rental market. Therefore, landlords and small-portfolio investors should approach this ZIP code with caution, focusing on areas where the FMR aligns more closely with market rents for better financial returns.
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.