Section 8 Fair Market Rent (FMR) for ZIP 79085 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 79085, located in Castro County, TX, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the Castro County area in fiscal year 2026 is set at $1,070, providing a stable baseline for rental income expectations. Given the lack of specific market rent data for ZIP 79085, we must infer that the FMR likely aligns closely with the actual market rents, offering consistent cash flow.

The median sale price of homes in Castro County has decreased by 32.3% since last year, selling for a median price of $220K. This indicates that the area may not be experiencing significant appreciation, making it less suitable as an appreciation play. However, the stability of the FMR suggests that rental income will remain predictable, which is crucial for cash flow management.

With the median home value also not specified, it is reasonable to assume that property values in Castro County are relatively low, allowing for a lower initial investment cost. This makes ZIP 79085 a viable option for landlords and small-portfolio investors looking to secure steady rental income without the volatility associated with rapidly appreciating markets.

In conclusion, ZIP 79085 should be considered as a cash-flow anchor within a Section 8 portfolio strategy due to the predictable rental income based on the FMR and the potential for lower initial investment costs. This approach ensures that the portfolio remains balanced and provides reliable returns.

Data Sources: FMR data from HUD (2027).

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.