Location: Deaf Smith County, TX | Metro: Castro 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 | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $205,028 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79045 in Deaf Smith County, TX, reveals several key insights for landlords and small-portfolio investors.
The rent math does not work favorably for investors seeking to leverage Federal Market Rent (FMR) rates. The FMR for the metro area in fiscal year 2026 is set at $1,070, while the current market rent, according to Census ACS data, is only $927. This discrepancy suggests that relying on FMR rates for setting rents could lead to vacancies or necessitate adjustments to match the local market conditions.
Acquisition in this area is relatively affordable. With a median home value of $173,006, potential investors can enter the market without requiring significant capital. However, the lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) indicates a stable but possibly less dynamic market. Investors should consider these factors when planning their investment strategy.
Tenant demand is present but moderate. The total population of ZIP 79045 is 18,189, with 33.3% being renters. This suggests a steady pool of potential tenants, though it's important to note that the demand might be limited by the overall size of the population and the specific needs of the rental market in this area.
Verdict: ZIP 79045 offers a modest opportunity for real estate investors looking to acquire properties at an affordable median home value. However, the mismatch between FMR and market rent rates poses a challenge for maximizing rental income. Despite the moderate tenant demand, the stability of the market could be beneficial for long-term investments. Investors should carefully evaluate local market dynamics and adjust their expectations 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.