Section 8 Fair Market Rent (FMR) for ZIP 79108 - 2027

Investment Score for ZIP 79108

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

To determine if a landlord should invest in ZIP 79108 (Amarillo, TX) for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1180 cover the debt service on a property valued at $201,914?

• Yes: The FMR is sufficient to cover the debt service. This means that the rental income generated from a Section 8 tenant would be enough to meet the mortgage payments and other financial obligations associated with owning the property. Landlords can proceed to the next step.
• No: The FMR does not cover the debt service. Investing in this area for Section 8 purposes would result in a financial loss. Landlords should consider other ZIP codes.

2) How does the market rent of $966 compare to the FMR?

• Above FMR: The market rent exceeds the FMR, indicating that landlords could potentially earn more from non-Section 8 tenants. However, this also suggests that Section 8 tenants might struggle to find housing in this area, reducing demand for Section 8 units. Landlords should weigh the benefits of higher rents against lower demand.
• At FMR: Market rent equals the FMR, meaning that landlords can expect to receive the FMR amount without difficulty. This scenario supports stable cash flows for Section 8 properties. Landlords should continue to the next question.
• Below FMR: Market rent is less than the FMR, which means landlords could set their rent slightly higher than the market rate and still attract Section 8 tenants. This situation offers a competitive edge over non-subsidized rentals. Landlords should proceed to the final question.

3) Is there enough demand with 24.8% of residents being renters and an unspecified number of days on the market (DOM)?

• It depends: With 24.8% of residents renting, there is a moderate level of demand. However, the lack of data on the average days on the market (DOM) makes it difficult to assess how quickly properties are rented out. If the DOM is low, it indicates strong demand, and landlords should feel confident investing in Section 8 properties. Conversely, if the DOM is high, it suggests weaker demand, and landlords should reconsider their investment strategy in this ZIP code.

Based on the provided data, the key to deciding whether to buy in ZIP 79108 for Section 8 purposes lies in the first two questions. If the FMR covers the debt service and either matches or exceeds the market rent, then the third question about demand becomes critical. Without specific DOM data, the final decision hinges on the local rental market dynamics and the landlord's risk tolerance.

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.