Location: Moore County, TX | Metro: Oldham County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 79018 is centered around the minimal gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $910, while the Census ACS data indicates that the market rent stands at $913. This represents a difference of just $3, or approximately 0.33%, between the two figures.
In this scenario where the FMR is slightly less than the market rent, it's important to understand the implications for landlords and small-portfolio investors. The FMR acts as a benchmark for the Housing Choice Voucher program, commonly known as Section 8. Landlords who accept voucher tenants agree to rent their properties at rates that do not exceed the FMR, which means they might be renting their units below the current market rate.
The cost of housing voucher tenants below open-market rates can be seen as an opportunity to serve a community need while still maintaining a reasonable yield. In ZIP 79018, where 29.4% of residents are renters and the median home value is $174,243, there is a significant portion of the population that relies on affordable housing options. With a median income of $76,667, many households find it challenging to afford market rents without assistance.
Accepting Section 8 tenants allows landlords to participate in a stable rental market. While the rent received may be slightly below the market rate, the guaranteed payment through the voucher program mitigates risk. This is particularly relevant given the slight discrepancy between the FMR and the market rent, making it a viable strategy for maintaining consistent cash flow.
To summarize, the small gap between the FMR and the market rent in ZIP 79018 presents an opportunity for landlords to engage in a yield play by accepting Section 8 tenants. This approach supports a substantial portion of the local population that depends on affordable housing and leverages the stability offered by the voucher program.
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.