Section 8 Fair Market Rent (FMR) for ZIP 79014 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP code 79014 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Here are three key objections and how the data addresses them:

• Will FMR $970 (metro FY 2026) cover the mortgage on a $170,805 home? The Fair Market Rent (FMR) of $970 per month is a critical figure for determining if the rent can cover the mortgage expenses. To assess this, we must consider the typical mortgage payment for a home priced at $170,805. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly mortgage payment would be approximately $830. This means that the FMR of $970 would indeed cover the mortgage expenses, leaving a buffer of $140 for other costs such as property taxes, insurance, and maintenance.

• Is there enough renter demand at 29.1%? The percentage of households renting in ZIP 79014 is 29.1%. While this might seem low compared to some metropolitan areas, it's important to note that this still represents a significant number of potential renters. With a total of 13,379 households in the area, approximately 3,896 households are renters. The demand for rental properties is therefore present, though not overwhelming. However, the focus should be on the specific segment of the market that Section 8 serves, which is typically lower-income families who rely on housing vouchers. The presence of these families ensures a steady demand for affordable rental units.

• Will vouchers keep pace with $836 market rents? The market rent of $836 per month is slightly below the FMR of $970. The challenge here lies in whether the Section 8 voucher amounts will match or exceed this market rent. In ZIP 79014, the voucher amount is designed to meet the FMR, meaning it should cover the $836 market rent comfortably. However, the data does not provide specifics on the historical growth rate of voucher amounts versus market rents. Therefore, while current figures suggest that vouchers will keep pace, future adjustments depend on federal funding and policy changes.

In summary, the data indicates that ZIP 79014 offers a feasible investment opportunity for Section 8 landlords and small-portfolio investors. The FMR sufficiently covers the mortgage expenses, ensuring financial stability. There is a notable renter population, although the demand is not high compared to other areas. Lastly, the current voucher amounts align well with market rents, but long-term sustainability requires monitoring of federal policies and funding trends.

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.