Location: Moore 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 | $760 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $173,800 | 0.82% | C |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 79036 might have several concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these objections with the available data.
Will Fair Market Rent (FMR) of $960 cover the mortgage on a $154,829 home?
The FMR for ZIP 79036 in fiscal year 2024 is set at $960. To determine if this will cover the mortgage, we must consider the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment on a $154,829 home would be approximately $835. This means that the FMR of $960 would indeed cover the mortgage payment, leaving some buffer for property taxes, insurance, and maintenance costs.
Is there enough renter demand at 7.7%?
The rental vacancy rate for ZIP 79036 stands at 7.7%. While this percentage suggests that there is some level of competition among landlords, it also indicates a relatively healthy market where demand outstrips supply. A vacancy rate below 10% generally signals a stable rental market. However, the data does not specify the exact number of renters or the total number of rental units, which could provide a clearer picture of the demand.
Will vouchers keep pace with $1,250 market rents?
The question here revolves around whether the voucher amount will match the rising market rents. The FMR of $960 is lower than the market rent of $1,250, suggesting a gap between what vouchers can cover and the actual cost of renting. Landlords should prepare for potential shortfalls unless they can secure additional sources of income or subsidies. It's important to note that while the FMR is a guideline, local housing authorities may adjust voucher amounts based on specific circumstances and needs within the community.
In conclusion, while the data shows that the FMR can cover the mortgage payments on a home valued at $154,829, there are still uncertainties regarding the exact demand for rentals and the ability of vouchers to keep up with market rents. Investors should conduct thorough due diligence and consider consulting with local real estate experts to better understand the dynamics of the ZIP 79036 rental market.
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.