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 | $910 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $115,452 | 1.09% | B |
| 3BR | $1,720 | $194,240 | 0.89% | C |
| 4BR | $1,910 | $235,706 | 0.81% | C |
U.S. Census Bureau data (2024)
The real estate market in ZIP 79110, Amarillo, TX, presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $169,458, indicating a relatively affordable market that attracts first-time buyers and investors looking for entry-level properties. The fact that only 0.2% of listings have been reduced signals strong seller confidence and limited pressure on prices, suggesting that landlords and investors can maintain their rental rates without significant adjustments.
The 21-day median days on market (DOM) further supports this view, as it indicates that homes are selling quickly, often before reaching the market's average price. This rapid turnover suggests a competitive buyer environment where properties can command their listed price. Consequently, the pricing power for landlords and investors in this area is robust, allowing them to set rental rates closer to the market value without fear of vacancy due to uncompetitive pricing.
On the rental side, the Fair Market Rent (FMR) for ZIP 79110 in fiscal year 2024 is projected at $1,320, while the Zillow Observed Rental Index (ZORI) currently stands at $1,434. This gap between FMR and ZORI suggests that the rental market is slightly outpacing government estimates, which could indicate a growing demand for rentals relative to the supply. Landlords and investors should expect to see steady rental income, though they must remain vigilant to any changes in local economic conditions that might affect tenant affordability.
For long-term investors, the setup in ZIP 79110 implies a moderate appreciation thesis. With a stable and slightly rising rental market and quick sales cycles, there is potential for gradual property value increases. However, the low percentage of listing reductions and the relatively low median home value suggest that appreciation will be modest rather than exponential. Investors should focus on the steady cash flow from rentals and anticipate conservative property value growth over the next 12 to 24 months.
In summary, ZIP 79110 offers a balanced opportunity for both ownership and rental investment, with a strong seller's market and a rental market that is slightly ahead of government projections. While the appreciation potential is present, it is realistic to expect modest gains rather than dramatic increases, making this area suitable for those seeking stable returns over time.
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.