Location: Swisher County, TX | Metro: Castro County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 79052 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,030, while the Census ACS reports the average market rent at $815. This creates a gap of $215, or approximately 26%, where landlords can receive higher rents through Section 8 vouchers than what is typically charged in the open market.
In this scenario, where the FMR exceeds the market rent, voucher tenants become a strategic asset for landlords and small-portfolio investors. By accepting Section 8 tenants, landlords can achieve a yield play that maximizes their rental income above the local market rate. This advantage is particularly pronounced given the ZIP code's demographic context: only 20.9% of residents are renters, indicating a limited pool of potential tenants. Additionally, the median home value stands at $121,769, suggesting that homeownership is more prevalent and potentially more desirable in the area. With a median income of $34,922, many renters might struggle to afford market-rate rents without assistance, making Section 8 vouchers an essential tool for attracting and retaining tenants.
The cost of housing voucher tenants below open-market rates is negligible in this case. Landlords who participate in the Section 8 program can expect to receive the higher FMR rate, which is guaranteed by the government. This means that even though the market rent is lower at $815, landlords will be compensated at the FMR level of $1,030. This difference not only covers the cost of maintaining properties but also provides a buffer against economic fluctuations, ensuring a stable and predictable income stream for investors.
To summarize, the gap between the FMR and market rent in ZIP 79052 makes it a prime location for landlords and small-portfolio investors to leverage Section 8 vouchers. It allows them to capitalize on a yield play that surpasses typical market rates, compensating for the relatively low percentage of renters and providing a reliable source of income. Accepting voucher tenants can thus be seen as a smart investment strategy in this ZIP code.
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.