Location: Hall County, TX | Metro: Briscoe County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 79261 reveals some critical insights for landlords and small-portfolio investors. The Federal Market Rent (FMR) for a two-bedroom apartment in ZIP 79261 for fiscal year 2026 is set at $970 per month, while the market rent, based on Census ACS data, stands at $565 per month.
To derive the implied gross-yield, we must annualize these figures. For the Section 8 scenario, the annualized rent would be $11,640 ($970 * 12 months). In contrast, the annualized market rent would be $6,780 ($565 * 12 months).
The median home value for ZIP 79261 is not available, which complicates a direct cap-rate calculation. However, we can still compare the gross-yields. The Section 8 program offers a significantly higher annualized rent compared to the market rate, implying a better gross-yield if you can secure a Section 8 tenant. This is particularly important given that only 30.3% of the population in this area are renters, suggesting a competitive market for tenants.
Regarding the days on market (DOM), the data is also not available, making it difficult to predict how quickly properties might be leased. Despite this, the higher annualized rent under the Section 8 program makes it a more attractive option for landlords who want a stable income stream, assuming they can find and retain a Section 8 tenant. The disparity between the $11,640 annualized rent under Section 8 and the $6,780 annualized market rent underscores the financial advantage of participating in the Section 8 program, even without precise cap-rate calculations.
In conclusion, for ZIP 79261, the Section 8 program presents a clear opportunity for higher gross-yields, which could be crucial for investors looking to maximize returns in an area where rental density is relatively low. While the exact cap-rate cannot be determined due to missing data, the comparison of gross-yields provides a solid basis for investment decisions.
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.