Location: Terrell County, TX | Metro: Terrell County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 79848 might raise several valid concerns regarding the feasibility of investing in rental properties within this area. Let's address these objections directly with the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,020 (metro FY 2026) cover the mortgage on a $115,488 home?
The FMR of $1,020 is an important figure but does not provide a complete picture without knowing the specific mortgage terms. Assuming a standard 30-year fixed-rate mortgage at an average interest rate, the monthly payment on a $115,488 home could be around $400 to $500, depending on the down payment and interest rate. This amount is significantly lower than the FMR, suggesting that the rent could cover the mortgage payments comfortably, even after accounting for property taxes, insurance, and maintenance costs. However, the exact mortgage cost requires specific financial details which are not provided here.
Objection 2: Is there enough renter demand at 11.8%?
The percentage of renter-occupied units at 11.8% might seem low compared to national averages, which often exceed 30%. However, it's crucial to consider the local context. A lower percentage of renters could indicate a higher concentration of owner-occupied homes, potentially leading to less competition among landlords. Additionally, the actual number of renters in ZIP 79848 is necessary to assess the true demand. The data does not specify the total number of housing units, so we cannot definitively quantify the demand level based solely on this percentage.
Objection 3: Will vouchers keep pace with N/A market rents?
The data provided does not include specifics on voucher amounts or how they compare to the market rents in ZIP 79848. Without this information, it's impossible to determine if vouchers will adequately cover the cost of renting a property at the fair market value. Vouchers can vary widely in amount and coverage, influenced by local housing authorities and federal guidelines. To make a sound investment decision, an investor should seek out current voucher rates and trends in the area to ensure that they will support the rental income needed.
In summary, while the FMR appears sufficient to cover mortgage costs, the low percentage of renters and lack of information on voucher amounts present challenges. Investors must look beyond these figures to understand the full rental landscape of ZIP 79848, including the total number of housing units and detailed voucher policies.
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.