Location: Haskell County, TX | Metro: Haskell County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 79539 provides insight into potential investment returns based on the Fair Market Rent (FMR) and market rent figures. For a two-bedroom unit, the annualized FMR for fiscal year 2026 is set at $970, while the Census ACS reports the market rent at $1,125.
The implied gross yield when using the FMR can be calculated by taking the annual rental income ($970) and dividing it by the median home value. However, since the median home value for ZIP 79539 is not available, we cannot provide an exact figure. If we hypothetically assume a median home value, the calculation would give us the gross yield. For instance, if the median home value were $200,000, the gross yield would be 0.485%. This is derived by multiplying the FMR by 12 months and then dividing by the median home value: ($970 * 12) / $200,000 = 0.485%. Note that this is purely illustrative without actual median home value data.
Similarly, the gross yield based on the market rent of $1,125 per month would be higher. Assuming the same hypothetical median home value of $200,000, the gross yield would be 0.675%. The calculation is straightforward: ($1,125 * 12) / $200,000 = 0.675%. Again, this is illustrative due to the lack of specific median home value data.
The 20.6% renter density in ZIP 79539 suggests a relatively low demand for rental properties compared to owner-occupied homes. This factor should be considered when evaluating the viability of a Section 8 investment. Additionally, the absence of Days on Market (DOM) data makes it challenging to assess how quickly units might turn over, which is critical for cash flow management.
Given the data, the gross yield based on market rent ($1,125) appears more realistic. While Section 8 rents are guaranteed, they are typically lower than market rates. The higher gross yield from market rent reflects the potential for greater returns if the property can attract non-Section 8 tenants willing to pay the higher rate. However, the decision to accept Section 8 tenants should balance the guaranteed income with the potential for higher yields from market rents.
In conclusion, while the precise gross yields depend on the median home value, the trend indicates that market rent yields a higher gross yield than the Section 8 FMR. Investors should weigh this against the stability of Section 8 payments and the local rental market dynamics.
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.