Section 8 Fair Market Rent (FMR) for ZIP 79221 - 2027

FY 2027 Fair Market Rent Rates

The investment risk assessment for ZIP 79221 in Unknown, TX, for Section 8 landlords and small-portfolio investors reveals several potential challenges. Tenant turnover is a significant concern due to the lack of available market rent data, which makes it difficult to set competitive rental rates. The Fair Market Rent (FMR) for the area is $970 per month for fiscal year 2026, based on metro area standards, but without knowing the local market rent, there's a risk of higher turnover if the FMR does not align with tenant expectations.

Vacancy exposure is another issue, as the Days on Market (DOM) data is unavailable. This uncertainty can lead to extended periods of vacancy, reducing cash flow and increasing the financial burden on the property owner. Additionally, the absence of typical home values and median income figures in the dataset means that the level of deferred maintenance cannot be accurately assessed. This lack of information poses a risk, as properties with high deferred maintenance costs can significantly impact profitability.

However, these risks must be weighed against the high renter share in the area, which is currently unknown. High renter density typically correlates with increased demand for housing vouchers, such as Section 8, thus potentially stabilizing occupancy rates. Despite the limited data, the presence of a large number of renters could mitigate some of the risks associated with tenant turnover and vacancy exposure.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027).

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.