Section 8 Fair Market Rent (FMR) for ZIP 79109 - 2027

Investment Score for ZIP 79109

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

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$950
2 Bedrooms	$1,160
3 Bedrooms	$1,580
4 Bedrooms	$1,760
5 Bedrooms	$2,042
6 Bedrooms	$2,287
7 Bedrooms	$2,470
8 Bedrooms	$2,594

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,160	$162,152	0.72%	D
3BR	$1,580	$235,406	0.67%	D
4BR	$1,760	$322,039	0.55%	F
5BR	$2,042	$433,711	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 79109 (Amarillo, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 79109, as per the 2026 figures, ranges from $820 for a zero-bedroom unit to $1840 for a four-bedroom unit. These figures represent the maximum rent that can be charged for a Section 8 voucher holder. However, the actual rental market in Amarillo, particularly for two-bedroom units, is significantly higher. The Zillow median price for a two-bedroom home is $159,259, which translates to a monthly rent of approximately $1130 based on typical mortgage payments and property management costs. This means that the actual rent for a two-bedroom unit is around $1130, which is well above the FMR of $1170. Given that the FMR for a two-bedroom unit is only 19.9% of the median household income ($70,435), voucher holders face significant constraints. They must find properties where the rent does not exceed $1170, which is challenging given the actual rental prices. Additionally, landlords have the discretion to set rents above the FMR, which could limit the availability of affordable housing for voucher holders. #### Affordability & Renter Profile ZIP code 79109 has a population of 43,578, with 42.2% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate of 90.2% suggests that the market is relatively tight, with most available units being occupied. Given the high rent-to-income ratio, it is likely that many renters are low to moderate-income households who rely heavily on affordability programs such as Section 8 vouchers. The median household income of $70,435 provides some context for the overall economic profile of the area. While the FMR for a two-bedroom unit is $1170, the actual rental price of $1130 still represents a significant portion of the average renter’s budget. This tight market dynamic implies that there is little room for price increases without potentially pricing out a significant number of tenants. #### Investor Angle From an investor perspective, the ZIP code 79109 presents both opportunities and challenges. The price-to-FMR ratio of 11.3x for a two-bedroom unit indicates that the purchase price of a home is significantly higher than what a Section 8 voucher holder would pay in rent. For instance, if an investor buys a two-bedroom home for $159,259, the monthly mortgage payment (assuming a 30-year fixed-rate mortgage at 4%) would be approximately $760. Adding property management costs and maintenance expenses, the total monthly cost might rise to around $900-$1000. However, the FMR for a two-bedroom unit is $1170, which leaves a potential margin of about $170-$270 per month before considering other income sources like tax benefits. This margin is relatively small but still positive, indicating that the ZIP code could be cash-flow positive for investors focusing on Section 8 properties. The investment grade for this ZIP code is moderate. While there is a strong demand for rental properties, the high price-to-FMR ratio suggests that returns will be modest compared to areas with lower ratios. Investors should carefully consider the long-term stability of the rental market and the potential for increased competition from non-voucher tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as zero-bedroom and one-bedroom apartments, where the gap between the FMR and actual rental prices is less pronounced. For example, a zero-bedroom unit with an FMR of $820 could be rented out at a slightly higher rate while still remaining attractive to voucher holders. This strategy could help maximize cash flow and reduce the risk of vacancy. 2. **Consider Location and Amenities**: Within ZIP code 79109, certain neighborhoods may offer better opportunities for cash flow due to lower local rental prices or higher demand. Investing in properties with desirable amenities, such as proximity to public transportation, schools, or shopping centers, could also make them more attractive to voucher holders and other renters. 3. **Long-Term Strategy**: Given the tight market conditions, investors should adopt a long-term strategy rather than seeking quick profits. This includes maintaining properties to ensure they remain competitive and attractive to tenants, as well as being prepared to navigate the complexities of working with Section 8 vouchers. #### Bottom Line For Section 8-focused investors, ZIP code 79109 offers a moderate investment opportunity. The cash flow is positive but limited, and the high price-to-FMR ratio suggests that returns will be modest. Given the strong demand for rental properties and the tight market, it is recommended to **buy** properties in this ZIP code, particularly smaller units, and to focus on long-term value retention and tenant satisfaction. However, investors should be cautious about overpaying for properties and should carefully evaluate the local rental market dynamics to ensure sustainable returns.

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.