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 | $850 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $228,300 | 0.52% | F |
| 3BR | $1,610 | $339,955 | 0.47% | F |
| 4BR | $1,790 | $467,264 | 0.38% | F |
| 5BR | $2,076 | $676,196 | 0.31% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 79124, located in Amarillo, TX, Potter County, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $1200. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this specific area.
Local market rents for a similar two-bedroom unit average at $1,208 according to the latest Census ACS data. This slight difference between the SAFMR and the market rent is a key point for landlords to consider when deciding whether to participate in the Section 8 program.
A Section 8 voucher is designed to help low-income families afford decent housing. The voucher pays the difference between the tenant's contribution and the rent. Typically, tenants contribute approximately 30% of their income towards rent. In ZIP 79124, if we assume an average tenant income that would require assistance up to the SAFMR level, the tenant might pay around $360 (30% of $1200), leaving the remaining $840 to be covered by the voucher.
In addition to the rent subsidy, the voucher also includes utility allowances. These allowances vary but are generally modest. For simplicity, let’s say the utility allowance is around $200. Therefore, the total monthly reimbursement a landlord can expect from a Section 8 voucher for a two-bedroom unit would be the sum of the tenant's contribution and the utility allowance, which comes to $1040.
This reimbursement of $1040 leaves a gap of $160 when compared to the average market rent of $1,208. This means landlords accepting Section 8 vouchers in ZIP 79124 will have to either accept a lower rent or seek additional subsidies or adjustments to cover the shortfall. However, it’s important to note that the exact reimbursement amount can vary based on the individual tenant's income and the specific terms of their voucher.
To summarize, in ZIP 79124, landlords participating in the Section 8 program can expect a reimbursement of around $1040 for a two-bedroom apartment, leading to a typical reimbursement gap of $160. This gap must be managed carefully to ensure profitability and compliance with the program's requirements.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.