Location: Amarillo, TX | Metro: Amarillo, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
ZIP 79111, located within the HUD Metro FMR Area of Amarillo, TX, presents itself as a strong candidate for a cash-flow anchor within a Section 8 portfolio strategy. The primary reason for this classification is the favorable spread between the Fair Market Rent (FMR) set by HUD for fiscal year 2024 and the prevailing market rents in the area.
The HUD FMR for ZIP 79111 in fiscal year 2024 is established at $1310. In contrast, the current market rent stands at $1241. This indicates that properties within this ZIP code can be rented out at rates slightly above the market average when participating in the Section 8 program, thus providing a stable and predictable source of cash flow. Landlords can leverage this positive differential to ensure consistent rental income, which is crucial for maintaining financial stability and growth within their portfolios.
While data on home values and price-cut shares are not available, the median income of residents in ZIP 79111 is $71,103, suggesting a moderate economic base that supports a robust rental market. With a 100.0% renter share, there is a high demand for rental properties, making it less likely for vacancies to occur and ensuring steady cash flow.
In conclusion, ZIP 79111 serves best as a cash-flow anchor due to the positive spread between HUD's FMR and the local market rents, combined with a high renter share and a stable economic environment. This positioning allows landlords and small-portfolio investors to secure reliable income streams, which are essential for building and sustaining a successful real estate investment strategy.
Data Sources: FMR data from HUD (2027). 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.