Location: Deaf Smith County, TX | Metro: Amarillo, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $143,712 | 0.58% | F |
| 2BR | $1,030 | $155,045 | 0.66% | D |
| 3BR | $1,410 | $281,074 | 0.5% | F |
| 4BR | $1,570 | $423,799 | 0.37% | F |
| 5BR | $1,821 | $559,546 | 0.33% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 79015, Canyon, TX, stands at $83,445. At first glance, this figure might seem sufficient to cover the market rate rent of $1,086 per month, known as the Zillow Observed Rent Index (ZORI). However, a closer look reveals an affordability gap that significantly impacts the rental market dynamics.
The Federal Market Rent (FMR) for ZIP 79015 in fiscal year 2024 is set at $1,040. This is the standard payment level for Section 8 housing vouchers. Comparing this to the market rate of $1,086, it becomes evident that voucher holders will have to pay a portion of their income towards the difference. For a household earning the median income, the monthly income available for housing expenses after basic living costs is approximately $3,150. This means that the $1,086 market rate represents about 34.5% of their net income, which is above the recommended 30% threshold for housing affordability.
In ZIP 79015, 33.0% of the 23,765 residents are renters. Given the affordability gap, landlords face a competitive challenge. A significant portion of the rental market may prefer properties that accept Section 8 vouchers due to the lower out-of-pocket expense required by tenants. The competition among landlords accepting vouchers could become intense, especially if many are seeking to benefit from guaranteed payments.
The takeaway for landlords considering whether to adopt a voucher versus cash-pay strategy is clear. While accepting vouchers ensures a steady income stream, it may limit the pool of potential tenants to those who qualify for assistance. Cash-paying tenants, although potentially more lucrative, may be harder to come by given the local affordability issues. Landlords should carefully consider their tenant mix and the local economic conditions when deciding on their rental policies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.