Location: Lavaca 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 | $930 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $284,047 | 0.58% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 78956 stands at $67,903, while the market rate for rent is $1,031 according to the Census ACS. This means that households in this area are paying approximately 18% of their income towards rent, which is considered affordable but leaves little room for other expenses.
In contrast, the Fair Market Rent (FMR) set by the metro for fiscal year 2026 is $1,150. This is significantly higher than the current market rate, indicating a substantial affordability gap for renters. The FMR is the amount the government deems necessary to cover the cost of housing, including utilities, and it is used to determine the value of housing vouchers.
Given that 28.2% of the 5,243 population are renters, there is a notable segment of the community that relies on rental housing. The discrepancy between the market rate and the FMR suggests that landlords who accept vouchers could tap into a different market segment—those who might otherwise be priced out of the area due to the higher voucher payment standards.
The affordability gap has implications for landlord competition. Landlords who choose to accept vouchers may attract tenants who are seeking housing that aligns with the higher FMR payments. However, this strategy comes with the understanding that voucher payments are typically lower than the FMR and may require additional administrative efforts.
For landlords considering whether to accept vouchers or focus on cash-paying tenants, the key takeaway is to evaluate the local rental market dynamics carefully. Accepting vouchers can open up a broader tenant pool, particularly among those with limited income, but it also means dealing with potentially lower rents compared to the FMR. Cash-paying tenants, while they might be fewer in number given the income levels, offer a simpler transaction process and potentially higher immediate returns based on the current market rate.
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.