Location: Amarillo, TX | Metro: Amarillo, TX HUD Metro FMR Area
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 | $890 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $111,512 | 1.1% | B |
| 3BR | $1,680 | $164,660 | 1.02% | B |
| 4BR | $1,860 | $190,918 | 0.97% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 79103, located in Amarillo, TX, and Potter County, hinge on understanding the Subsidized Average Fair Market Rent (SAFMR) and how it compares to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1130. This figure is specifically tailored for this ZIP code, meaning it reflects the rental rates considered fair within 79103.
Local market rent, as per the Census American Community Survey (ACS), stands at $1,253 for a similar two-bedroom unit. When a landlord participates in the Section 8 program, they receive payments based on the SAFMR, not the local market rent. However, the total payment a landlord receives includes both the tenant's portion and any utility allowances.
The tenant's portion is typically 30% of their adjusted income, which varies depending on the individual tenant's financial situation. If we assume an average adjusted income for tenants in this area, the tenant might contribute around $339 towards rent ($1130 * 0.30). This leaves the remaining amount to be covered by the housing authority, which would be $791 in this case ($1130 - $339).
In addition to the base rent, landlords also receive utility allowances. These allowances can vary but are generally designed to cover the cost of utilities such as electricity, gas, water, and sewage. For ZIP 79103, the utility allowance is often around $150-$200 per month, though the exact amount depends on the tenant's specific circumstances and the housing authority's guidelines.
Therefore, a landlord in ZIP 79103 can expect to receive a total reimbursement of approximately $941-$991 per month for a two-bedroom apartment under the Section 8 program. This calculation combines the housing authority's contribution of $791 with a utility allowance of $150-$200.
Given that the local market rent is $1,253, this means there is a reimbursement gap of about $262-$312 per month. In other words, landlords will receive less than the market rent for a two-bedroom apartment when using a Section 8 voucher. This gap is something landlords must consider when deciding whether to participate in the program or not.
To summarize, in ZIP 79103, the SAFMR for a two-bedroom apartment is $1130, while the local market rent is $1,253. A landlord participating in Section 8 can expect to receive $941-$991 per month, leaving a reimbursement gap of $262-$312. This gap represents the difference between what the market would pay and what the government subsidy covers, making it a critical factor in the decision to accept Section 8 vouchers.
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.