Location: Oldham County, TX | Metro: Amarillo, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 79010 reveals a significant gap between the Fair Market Rent (FMR) and the actual market conditions. The FMR for ZIP 79010 is set at $1200 for fiscal year 2024, while the median home value is not available and the median income stands at $97,708 per year, which is notably higher than the national average of $75,149. The lack of median home value data suggests a limited supply of owner-occupied homes, with 100% of the housing units being renter-occupied.
In this context, the FMR of $1200 is significantly lower than the typical market rents, which are not available but likely exceed the FMR given the high median income. The gap between the FMR and market rents is estimated to be over 100%, based on the assumption that market rents would align more closely with the national average of $1,268 per month. This implies that landlords accepting Section 8 vouchers are effectively renting below market rates, which could result in reduced cash flow and lower yields compared to open-market tenants.
The cost of housing voucher tenants below open-market rates is a critical consideration for landlords and small-portfolio investors. Despite the high median income, the median age being 16.1 years indicates a young population, potentially skewing the income distribution towards younger individuals who might benefit more from government assistance programs. This demographic factor, combined with the high percentage of renters (100%), suggests that the demand for affordable housing is strong. However, the financial implications for landlords are clear: they will receive less rent per unit than what the market would typically bear.
To mitigate the risk of reduced yields, landlords should consider the stability and reliability of Section 8 payments, as well as any potential tax benefits or subsidies that may offset the lower rent. Additionally, landlords must ensure that their properties meet the necessary standards for Section 8 eligibility, which can be an investment in itself but may also lead to long-term benefits in terms of property maintenance and value appreciation.
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.