Location: Gray County, TX | Metro: Amarillo, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 79097 might have several concerns regarding the feasibility of investing in properties for Section 8 tenants. Let's address these objections head-on using the available data.
The Fair Market Rent (FMR) for ZIP 79097 is set at $1010 for fiscal year 2024. This figure represents the average monthly rent that Section 8 tenants can be expected to pay. To determine if this amount can cover the mortgage on a $143,152 home, we must consider the typical interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on a $143,152 home would be approximately $700. The FMR of $1010 easily surpasses this amount, providing a buffer of $310 per month. This surplus can be used to cover property taxes, insurance, maintenance, and other expenses associated with owning a rental property.
The percentage of renter-occupied housing units in ZIP 79097 stands at 24.3%. While this figure is lower than some areas with higher renter demand, it still indicates a significant portion of the population relies on rentals. Moreover, the presence of Section 8 tenants can stabilize the rental market by ensuring consistent demand even when the broader economy fluctuates. For small-portfolio investors, this level of demand could be sufficient to maintain occupancy rates and generate steady cash flow.
The market rent for ZIP 79097 is reported at $866. Given that the FMR is set higher at $1010, landlords can expect that Section 8 vouchers will indeed cover the majority of market rents. However, the data does not provide a direct comparison of voucher amounts to market rents over time, so it is prudent to monitor any changes in both FMR and market rents. Historically, FMR adjustments have been made to reflect changes in the local housing market, ensuring that vouchers remain competitive and useful for tenants seeking affordable housing.
The data shows that ZIP 79097 presents a viable opportunity for landlords and small-portfolio investors interested in Section 8 properties. While there are valid concerns about mortgage coverage, renter demand, and voucher adequacy, the numbers suggest that these issues can be managed effectively with proper planning and attention to market trends.
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.