Location: Amarillo, TX | Metro: Amarillo, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,390 |
| 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)
To incorporate ZIP 79019 into a Section 8 portfolio strategy, it's essential to evaluate its financial metrics against market conditions and tenant needs. This area, part of the Amarillo, TX HUD Metro FMR region, has a Fiscal Year 2024 Fair Market Rent (FMR) set at $1120 for a standard unit. In contrast, the current market rent stands at $993, indicating a spread of $127 in favor of Section 8 rental rates.
The median home value in ZIP 79019 is $228,315, which reflects the broader housing market dynamics. However, for landlords and small-portfolio investors focusing on rental properties, the key metric is the renter share, which is 17.6%. This suggests that nearly one in every five households in the area is likely to be a renter, making it a viable market for rental investments.
The median income of $74,750 in the area provides insight into the economic profile of potential tenants. Given that the FMR for Section 8 is $1120, landlords can expect a steady stream of tenants who qualify based on their income levels. The data does not provide specifics on price-cut shares or days on market (DOM), which would typically indicate an appreciation play. Therefore, it's most prudent to classify ZIP 79019 as a cash-flow anchor within a Section 8 portfolio strategy.
A cash-flow anchor is crucial for maintaining stable income streams, especially when dealing with fluctuating markets or uncertain economic conditions. The positive spread between the FMR and market rent ensures that landlords can charge closer to the FMR rate, thereby maximizing their cash flow. Additionally, the consistent demand for rental units, driven by both the renter share and the median income levels, supports the idea that this ZIP code can serve as a reliable source of steady rental income.
In conclusion, ZIP 79019 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Its favorable rent spread and significant renter share ensure a predictable and steady income, which is critical for landlords and small-portfolio investors looking to stabilize their financial performance.
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.