Location: Milam County, TX | Metro: Lee 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 | $860 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,560 | $342,696 | 0.46% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 78947 presents a dynamic environment that is indicative of both supply and demand forces at play. With a Fair Market Rent (FMR) of $1,140 for fiscal year 2026, it is clear that the government has set expectations for rental prices in line with the area's economic conditions. However, the current market rent stands at $1,068, according to the latest Census American Community Survey (ACS) data. This suggests that there is a slight downward pressure on rents, as evidenced by the relatively low FMR compared to the actual market rent.
The fact that only 0.2% of listings have been subject to price cuts indicates that landlords are generally holding firm on their asking prices, possibly due to the high proportion of renters in the area. The renter share of the population is 24.8%, which is a significant figure. This high percentage of renters can be interpreted as a sign of long-term housing pressure, where many residents find it more practical to rent rather than purchase a home. Such a trend can be driven by various factors, including affordability issues, job mobility, or lifestyle preferences.
The median home value of $418,400 reflects the overall cost of homeownership in the area, which might be beyond the reach of some potential buyers, thus contributing to the high renter share. This combination of factors—market rent slightly below FMR, low price-cut share, and high renter share—implies that the demand for rental properties is robust, even if it doesn't necessarily translate into a rapid increase in prices.
In summary, the market in ZIP 78947 is balanced but leaning towards a scenario where demand for rentals is strong. Landlords and small-portfolio investors should focus on maintaining competitive rental rates and ensuring that their properties meet the needs of the local rental market. Given the snapshot of the data, it appears that the market is currently stable, with a slight indication that demand for rentals could be outpacing the supply of available homes for sale.
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.