Section 8 Fair Market Rent (FMR) for ZIP 79095 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A skeptical investor looking at ZIP code 79095 might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these concerns directly using the available data.

• Will FMR $970 (metro FY 2026) cover the mortgage on a $83,247 home?: The Fair Market Rent (FMR) of $970 for ZIP 79095 is a critical figure when considering whether it can support the mortgage payments on an average-priced home. To determine if this amount is sufficient, we need to calculate the expected monthly mortgage payment based on the median home price of $83,247. Assuming a typical interest rate and down payment, the FMR should be compared against the total cost of owning the property, including taxes, insurance, and maintenance. While the FMR alone does not provide a complete picture of mortgage affordability, it suggests that investors will need to ensure they secure favorable loan terms and factor in additional expenses to maintain profitability.
• Is there enough renter demand at 26.2%?: The percentage of renters in ZIP 79095 stands at 26.2%, which may seem low compared to other areas with higher renter populations. However, this figure does not necessarily indicate a lack of demand. It is essential to consider the total number of households and the potential growth in rental demand. A lower percentage could still translate into a substantial number of tenants, especially if the area has a growing population or increasing job opportunities. Moreover, the stability of rental income through the Section 8 program can attract a steady stream of tenants, making the investment viable despite the relatively low percentage of renters.
• Will vouchers keep pace with $715 market rents?: The current market rent in ZIP 79095 is $715, which is below the FMR of $970. This indicates that vouchers are likely to cover the majority of the rent for eligible tenants. However, the question remains whether the voucher amounts will adjust to match any future increases in market rents. The Housing Choice Voucher Program aims to cover a significant portion of the rent, but it is subject to funding levels and policy changes. Investors should monitor local housing authority announcements and federal guidelines to anticipate any adjustments in voucher amounts. In the meantime, the current gap between market rents and the FMR provides a buffer that benefits landlords.

The data available offers insights into the viability of Section 8 investments in ZIP 79095, addressing key concerns around mortgage coverage, tenant demand, and voucher adequacy. While some questions require ongoing monitoring, the initial figures suggest a potentially stable investment environment.

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.