Section 8 Fair Market Rent (FMR) for ZIP 79021 - 2027

Location: Hale County, TX | Metro: Hale County, TX

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$930
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,560
5 Bedrooms	$1,810
6 Bedrooms	$2,027
7 Bedrooms	$2,189
8 Bedrooms	$2,298

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

Median Household Income

$51,094

Housing Units

Renter Percentage

76.5%

Occupancy Rate

56.7%

Renter Occupied

A landlord considering ZIP 79021 for Section 8 investments should follow this decision tree:

1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property?

No: The FMR does not clear the debt service. This makes it a risky investment since the rental income will not be sufficient to cover mortgage payments and other expenses.
Yes: Proceed to the next question.

2) How does the market rent of $625 compare to the FMR?

Below FMR: At $625, the market rent is below the FMR of $970. This indicates that properties in this area may struggle to attract tenants willing to pay the FMR rate, making it less favorable for Section 8 investments.
Above or Equal to FMR: Not applicable in this case, but if the market rent were at or above the FMR, it would suggest a healthier rental market where Section 8 rents are more likely to be accepted.

3) Is there enough demand with 76.5% of residents being renters and an average of N/A days on the market?

It Depends: With 76.5% of the population renting, there is a significant portion of the market that could potentially benefit from Section 8 housing. However, without a specific number for days on the market (DOM), it's challenging to assess the speed at which units are typically leased. A low DOM would indicate strong demand, whereas a high DOM would suggest otherwise. Given the incomplete DOM data, landlords must research local market conditions further to determine if the demand is robust enough to support their investment.

In conclusion, based on the provided data, ZIP 79021 presents a mixed picture for Section 8 investments. The FMR of $970 needs to exceed the debt service costs for the investment to make financial sense. Additionally, the market rent at $625 is below the FMR, which may deter potential tenants from accepting Section 8 vouchers. Lastly, while the high percentage of renters suggests a need for affordable housing, the lack of DOM data leaves uncertainty about the leasing speed and overall demand for properties in this area.

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.