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 | $760 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $870 | $65,964 | 1.32% | A |
| 2BR | $1,060 | $89,299 | 1.19% | B |
| 3BR | $1,450 | $125,920 | 1.15% | B |
| 4BR | $1,610 | $148,695 | 1.08% | B |
| 5BR | $1,868 | $161,219 | 1.16% | B |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 79107 in Amarillo, TX, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1010, while the market rent, measured by ZORI (Zillow Observed Rent Index), is $1,004. This means that the FMR is $94 less than the market rent, or a 9.4% discount.
In Amarillo, where 44.0% of residents are renters, the median home value is $109,877, and the median income is $40,671, the discrepancy between FMR and market rent suggests that landlords can benefit from accepting Section 8 vouchers. The lower FMR compared to the market rent indicates that voucher tenants pay below the open-market rate, which might seem like a disadvantage. However, the stability of rental income through government subsidies compensates for the lower rent.
Accepting Section 8 vouchers transforms this area into a yield play for landlords. While the rent per unit is slightly lower, the guaranteed monthly payments from the Housing Choice Voucher program reduce the risk of non-payment and vacancy. In a market where the median income is relatively low at $40,671, the availability of Section 8 vouchers helps maintain occupancy rates, ensuring steady cash flow for landlords.
The analysis also highlights the financial landscape of Amarillo. With a median home value of $109,877, it is evident that homeownership is accessible but not without financial strain. This context further underscores the importance of Section 8 in providing affordable housing options for low-income families, thereby supporting the local economy and community.
Landlords and small-portfolio investors should consider the benefits of accepting Section 8 vouchers in ZIP 79107. Despite the $94 difference in rent, the security of consistent payments and the potential for long-term tenancy can lead to a more predictable and stable investment outcome.
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.