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 | $770 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $232,236 | 0.46% | F |
| 3BR | $1,460 | $276,577 | 0.53% | F |
| 4BR | $1,620 | $438,664 | 0.37% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 79121, located in Amarillo, Texas, Randall County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1110. This figure is specific to ZIP 79121 and reflects the maximum amount the government will pay toward rent for a unit in this area.
The local market rent, based on Census ACS data, for a similar two-bedroom unit is $1,167. This represents the average rent charged for comparable units in the same area.
A landlord participating in the Section 8 program receives payments from the Housing Choice Voucher Program. These payments cover the difference between the tenant's contribution and the SAFMR. For a two-bedroom unit, the tenant is typically required to contribute 30% of their adjusted income towards rent. If we assume an adjusted household income of $2,000 per month, the tenant would contribute $600 (30% of $2,000).
The government then pays the remaining amount up to the SAFMR. In this case, it would be $510 ($1110 - $600). However, landlords also receive additional payments for utilities, which can vary but often range from $150 to $200 per month. For simplicity, let's use a utility allowance of $175.
Therefore, the total reimbursement a landlord would receive for a two-bedroom apartment under the Section 8 program would be $685 ($510 + $175).
This leaves a gap between the market rent and the reimbursement. Specifically, for a two-bedroom unit rented at $1,167, the landlord would have a reimbursement gap of $482 ($1,167 - $685).
In summary, landlords in ZIP 79121 who participate in the Section 8 program for a two-bedroom unit can expect a reimbursement of $685, which is less than the local market rent of $1,167, resulting in a reimbursement gap of $482 per month.
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.