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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $95,334 | 1.06% | B |
| 3BR | $1,390 | $131,259 | 1.06% | B |
| 4BR | $1,570 | $145,342 | 1.08% | B |
U.S. Census Bureau data (2024)
The ZIP code 79104 in Amarillo, TX, presents a challenging environment for both renters and landlords due to the economic realities faced by local households. The median income here stands at $39,920, which makes it difficult for many residents to meet the market rate rent of $912 per month based on Census American Community Survey (ACS) data. This discrepancy highlights a significant affordability gap for renters.
To put this into perspective, let’s consider the Federal Market Rate (FMR), which is set at $1030 for the fiscal year 2024. This figure represents the maximum amount that landlords can receive through the Section 8 Housing Choice Voucher program for renting properties in this area. However, the FMR is higher than the market rate, indicating that the voucher program aims to cover more than what the average renter might pay in the open market.
With 44.6% of the population being renters and a total population of 6,561, competition among landlords in ZIP 79104 is likely to be fierce. Landlords who rely solely on market rate rents may find it hard to attract tenants, especially those with limited financial resources. On the other hand, landlords who accept vouchers could benefit from a more stable tenant pool, as the voucher program helps to bridge the affordability gap.
The takeaway for landlords considering their strategy in ZIP 79104 is clear: accepting vouchers can be a viable option to secure tenants in an area where many struggle to afford market rates. While the voucher payment standard of $1030 is slightly above the current market rate, it ensures a steady income stream and reduces the risk of vacancies. For those who prefer cash-paying tenants, they must be prepared to offer competitive pricing or additional amenities to stand out in a crowded rental market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.