Location: Gray County, TX | Metro: Amarillo, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 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 market analysis for Section 8 investors in ZIP code 79039, located in Gray County, TX, reveals several key points. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1050, while the Census American Community Survey (ACS) reports the market rent at $1036. This indicates that voucher tenants will generally cashflow at the FMR, providing a positive financial outlook for landlords.
To further analyze the investment potential, consider the median home value in ZIP 79039, which stands at $140,142. Using this figure, we can calculate the rent-to-price ratio. With a monthly rent of $1036, the annual rent would be approximately $12,432. Dividing the annual rent by the median home value yields a rent-to-price ratio of about 8.87%. This suggests that rental income covers a significant portion of the property's value, making it a viable option for investors seeking steady cash flow.
Note that the data does not provide a median days on market (DOM) or a percentage of price cuts, but these metrics typically do not significantly impact the decision-making process for Section 8 investments. The primary focus remains on the cash flow generated by the difference between the FMR and the actual market rent.
The strongest angle for investors in this market is cashflow. Given that voucher tenants will cover their rent at the FMR, and the FMR slightly exceeds the market rent, landlords can expect a consistent and positive cash flow scenario.
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.