Section 8 Fair Market Rent (FMR) for ZIP 79041 - 2027

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

Investment Score for ZIP 79041

N/A
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
3BR $1,410 $140,574 1% B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
2,861
Median Household Income
$61,832
Housing Units
1,255
Renter Percentage
18.5%
Occupancy Rate
80.4%
Renter Occupied
187

The economics of Section 8 housing in ZIP code 79041 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a two-bedroom unit in this specific area.

Local market rents, according to the Census ACS, run at $587 for a two-bedroom apartment. This indicates that the SAFMR is significantly higher than the average market rent, which can be beneficial for landlords participating in the program.

A voucher payment is composed of two parts: the tenant's portion and the utility allowance. The tenant is expected to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,617 (the amount needed to afford the $587 market rent), the tenant would contribute $485.20 ($1,617 * 0.30).

The utility allowance varies but typically covers a substantial part of the tenant's monthly utility costs. For simplicity, let's consider a utility allowance of $200, though this can differ based on individual circumstances and the specific terms of the voucher.

In summary, the total reimbursement a landlord can expect from the Section 8 program for a two-bedroom apartment would be the sum of the SAFMR and the utility allowance: $970 + $200 = $1,170. This is the amount the landlord would receive each month if the voucher holder lives in a property costing up to the SAFMR limit.

To illustrate further, let's break down the components:

This means the landlord receives a total of $1,170 per month. However, since the local market rent for a two-bedroom apartment is only $587, there is a surplus for landlords who participate in the Section 8 program in ZIP 79041. The surplus is calculated as follows: $1,170 - $587 = $583. This surplus can be used to cover maintenance costs, vacancies, or other expenses related to property management.

In conclusion, landlords in ZIP 79041 can benefit from the Section 8 program due to the significant difference between the SAFMR and the local market rent. The typical reimbursement for a two-bedroom apartment exceeds the market rent by $583, providing a financial buffer for those involved in the program.

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.