Location: Sherman County, TX | Metro: Hartley County, TX
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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $215,381 | 0.69% | D |
U.S. Census Bureau data (2024)
In ZIP code 79029, the economics of Section 8 housing can be quite different from the broader local market. The Section 8 Area Median Rent (SAFMR) for a two-bedroom apartment is set at $1,140 per month for fiscal year 2026. This figure represents the maximum amount that the government will reimburse landlords under the Section 8 program for a unit of this size.
However, the local market rent for a similar unit is considerably lower, at $1,013 per month, based on recent Census American Community Survey (ACS) data. This means that landlords operating in ZIP 79029 must navigate a unique financial landscape where the government's reimbursement rates exceed the prevailing market rates.
To understand the actual payments received by landlords, it's essential to break down the components of a Section 8 voucher. The voucher system is designed so that tenants contribute a portion of their income towards rent, typically around 30%, and the government covers the rest up to the SAFMR limit. Additionally, there are utility allowances that can vary but generally aim to cover basic living costs without placing an undue burden on the tenant.
Let's assume a tenant's income is such that they would pay approximately $300 per month towards rent. In this scenario, the government would pay the difference between the tenant's contribution and the SAFMR, which amounts to $840 per month. However, because the local market rent is lower at $1,013, the total payment to the landlord would still be less than the SAFMR cap. This results in the landlord receiving a total of $1,140 per month, which includes both the tenant's contribution and the government's reimbursement.
The utility allowance adds another layer to the reimbursement structure. For a two-bedroom apartment, this allowance can range from $100 to $300 depending on the specific circumstances and location. If we take an average utility allowance of $200 per month, this brings the total reimbursement to the landlord to $1,340 per month.
Given these figures, landlords in ZIP 79029 can expect a slight surplus when renting a two-bedroom apartment to a tenant with a Section 8 voucher. The surplus is calculated by subtracting the local market rent ($1,013) from the total reimbursement ($1,340), resulting in an additional $327 per month. This surplus can help offset some of the administrative and compliance costs associated with participating in the Section 8 program.
It's important to note that the SAFMR rate is set specifically for this ZIP code, reflecting the unique economic conditions of the area. Landlords should use this information to make informed decisions about whether to participate in the Section 8 program and how to price their units accordingly.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.