Location: Ward County, TX | Metro: Ward County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79742, located in Ward County, Texas, reveals several critical points for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, set at $970 for the fiscal year 2026, is significantly higher than the current market rent of $428 based on Census ACS data. This discrepancy suggests that the actual rents being charged are below the benchmark rates set by HUD, indicating potential opportunities to increase rental income without exceeding reasonable market rates.
Moving on to the affordability of acquisitions, the data shows that the median home value is not available, which complicates the assessment of property values relative to comparable areas. Additionally, the days on market (DOM) and the percentage of homes that have had their prices cut are also unavailable. Without these metrics, it's challenging to gauge the ease or difficulty of acquiring properties at affordable prices.
The third point concerns tenant demand. With a total population of 620 and a renter share of 13.6%, the number of potential renters in the area is relatively low. However, this does not necessarily mean that there isn't demand; it could indicate a smaller but stable pool of tenants.
Verdict: While the potential to increase rents exists, given the significant gap between FMR and current market rates, the lack of specific data on median home values, DOM, and price-cut percentages makes it difficult to assess the overall acquisition costs and feasibility. Tenant demand appears modest due to the small population size, but the existing renters represent a consistent base. For investors looking to enter this market, careful consideration should be given to the local economic conditions and the ability to attract and retain tenants in a competitive environment, despite the favorable rent-to-FMR ratio.
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.