Section 8 Fair Market Rent (FMR) for ZIP 78962 - 2027

Location: Fayette County, TX | Metro: Colorado County, TX

Investment Score for ZIP 78962

N/A

Monthly Rent (2BR)

$1,040

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$810
1 Bedroom	$830
2 Bedrooms	$1,040
3 Bedrooms	$1,270
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,270	$329,147	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,236

Median Household Income

$71,278

Housing Units

2,701

Renter Percentage

24.3%

Occupancy Rate

81.6%

Renter Occupied

535

The economics of Section 8 in ZIP code 78962 are structured around the $980 SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment as set for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for a two-bedroom unit in this specific ZIP code. However, it's important to understand how this payment is broken down and how it interacts with the local market rent, which stands at $508 according to the Census ACS.

A Section 8 voucher is designed to cover the difference between the local market rent and the tenant's portion, which is typically 30% of their income. Here’s how it works:

Tenant's Portion: If a tenant's monthly income is $1,500, their contribution would be $450 (30% of $1,500).
Voucher Payment: The voucher would cover the remaining portion of the local market rent up to the SAFMR limit. In this case, if the local market rent is $508, the voucher would pay $508 minus the tenant's $450, resulting in a voucher payment of $58.
Utility Allowances: Utility allowances are separate from the base rent and can vary based on the size of the unit and the region. For a two-bedroom unit, the allowance might be around $200, depending on the specifics of the voucher and the local utility costs.

In summary, the total reimbursement a landlord receives includes the voucher payment for rent plus any applicable utility allowances. For a two-bedroom unit priced at the local market rent of $508, the landlord would receive the tenant's $450 plus the voucher's $58, totaling $508 for rent. With an additional utility allowance of $200, the total reimbursement would be $708.

This means there is a reimbursement gap of $272 per month ($980 - $708) between the SAFMR and the actual reimbursement received by the landlord when renting at the local market price. Landlords should consider this gap when deciding whether to accept Section 8 vouchers for units priced at the local market rate. Alternatively, if landlords charge closer to the SAFMR rate, they could potentially close this gap or even create a surplus, but they must ensure that the rent remains reasonable compared to the local market conditions.

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.