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 | $800 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $72,084 | 1.26% | A |
| 2BR | $1,110 | $108,094 | 1.03% | B |
| 3BR | $1,520 | $196,336 | 0.77% | D |
| 4BR | $1,680 | $280,782 | 0.6% | F |
| 5BR | $1,949 | $356,742 | 0.55% | F |
U.S. Census Bureau data (2024)
Amarillo, TX's ZIP code 79106 is a residential area with a total population of 26,161. Nearly half of the residents, 48.4%, are renters, indicating a significant demand for rental properties in the neighborhood. The median household income in this area is $59,493, which suggests that residents have a moderate level of economic stability. Additionally, the median home value stands at $166,000, reflecting a relatively affordable housing market.
The rent economics in ZIP 79106 are favorable for Section 8 investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1010, while the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), is slightly lower at $986. This means that Section 8 tenants can afford rents that are close to the market rate, making it possible for landlords to receive competitive rental incomes through the voucher program.
Given these conditions, ZIP 79106 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the alignment between the FMR and market rent provides a stable and predictable income stream, as the voucher program covers the majority of the rent. Meanwhile, hands-on value-add buyers can leverage the moderate median income and median home value to improve properties and potentially increase their rental rates, staying within the FMR guidelines. However, the significant percentage of renters in the area also presents an opportunity for hands-on investors to create value by enhancing property amenities and services, thereby attracting more stable tenants and increasing occupancy rates.
In conclusion, ZIP 79106 offers a balanced environment for Section 8 investments, with a substantial rental market and favorable rent economics. Whether you're looking for a passive investment or an active role in managing your portfolio, this neighborhood presents viable opportunities for both hands-off and hands-on approaches.
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.