Location: Fayette County, TX | Metro: Colorado County, TX
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 | $910 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,460 | $316,910 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 78934 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $869 being notably lower than the Fair Market Rent (FMR) of $1,140 for the metro area in FY 2026. This discrepancy can lead to higher tenant mobility, as individuals might seek better deals outside the program. Additionally, the vacancy exposure is substantial due to the lack of data on days on market (DOM), indicating potential difficulty in filling vacancies quickly. The typical home value in the area stands at $310,682, while the median income is $58,302. These figures suggest that many homeowners may be under financial strain, leading to deferred maintenance and potentially affecting property quality over time.
However, these risks must be weighed against the high concentration of renters in the area, with 23.0% of the population being renters. High renter density typically correlates with increased demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. The presence of a substantial number of voucher holders can mitigate some of the financial risks associated with tenant turnover and vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.