Location: Real County, TX | Metro: Edwards 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)
In ZIP code 78880, the economics of Section 8 housing can be quite different from the broader market due to the specific SAFMR (Small Area Fair Market Rent) rates established by the U.S. Department of Housing and Urban Development (HUD). For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1,020. This figure represents the maximum amount that HUD will reimburse landlords for renting out their units under the Section 8 program.
Comparatively, the local market rent for a two-bedroom unit, according to the Census ACS data, is $713. This indicates that the SAFMR is higher than the average market rent, which might initially seem favorable for landlords. However, it's important to understand how the actual reimbursement works when considering the total economic impact.
The Section 8 voucher system operates on a shared responsibility model where the tenant pays a portion of the rent based on their income, and HUD covers the remainder up to the SAFMR limit. Typically, tenants contribute 30% of their adjusted monthly income towards rent. If a tenant has an adjusted monthly income of $1,500, they would pay $450 toward the rent. In this scenario, HUD would cover the difference between the tenant's contribution and the SAFMR, which is $570 ($1,020 - $450).
However, the reimbursement also includes utility allowances, which are predetermined amounts meant to help cover the cost of utilities. These allowances vary but are generally around $200-$300 per month for a two-bedroom apartment. Therefore, if we assume a utility allowance of $250, the total reimbursement a landlord receives would be $820 ($570 + $250).
This means that even though the SAFMR is $1,020, the actual reimbursement a landlord receives is less. In the case of a two-bedroom unit in ZIP 78880, the reimbursement gap is $200 ($1,020 - $820). This gap is the difference between the SAFMR and the actual amount paid by HUD plus the tenant, reflecting the shortfall landlords might face compared to the maximum allowable rent under the Section 8 program.
Given that the local market rent is $713, landlords participating in Section 8 in ZIP 78880 could see a surplus of $107 ($820 - $713) over the average market rent. This surplus provides a financial cushion, making Section 8 participation potentially attractive despite the reimbursement gap.
Landlords should carefully consider these factors when deciding whether to participate in the Section 8 program in ZIP 78880. While the reimbursement is structured to ensure affordability for tenants, it also sets a clear framework for landlord compensation, which can vary significantly from the local market conditions.
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.