Location: Terrell County, TX | Metro: Pecos 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 | $810 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $229,339 | 0.6% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 79735, located in Terrell County, TX metro, reveals several key points that can inform investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $970 for the fiscal year 2026, which is slightly higher than the market rent of $937 as reported by the Census ACS.
This indicates that voucher tenants will generally cashflow at the FMR rate, providing a stable income stream for landlords. However, it's important to note that the slight margin above the market rent means that landlords might see marginal cashflow improvements, especially if they manage to lease units close to the FMR without significant concessions.
The median home value in ZIP 79735 is $173,384. Using this figure, we can calculate the rent-to-price ratio, which stands at approximately 6.5%. This ratio suggests that rental properties in the area are relatively affordable compared to their purchase price, making them attractive to both renters and buyers. For investors, this implies that there could be opportunities for both rental income and potential property appreciation over time.
The dynamics between renting and buying in this market are further supported by the fact that the median Days on Market (DOM) is listed as N/A, indicating either a very active market where homes sell quickly or limited data availability. Additionally, the price-cut share of 0.2% suggests that sellers rarely need to reduce their asking prices, which can be an indicator of strong buyer demand and potentially stable or appreciating property values.
In conclusion, the strongest angle for investors in ZIP 79735 is likely cashflow, given the slight premium of the FMR over the market rent. This ensures that landlords can expect consistent, positive cashflow from Section 8 tenants, while also benefiting from the favorable rent-to-price ratio and stable 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.