Location: Collingsworth County, TX | Metro: Childress County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 79230 provides insight into potential investment opportunities for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $990 per month. To annualize this figure, we multiply it by 12, resulting in an annual FMR of $11,880.
The median home value for ZIP 79230 is currently not available, which complicates the calculation of the implied gross yield based on property values. However, we can still derive useful information from the data that is available.
In ZIP 79230, the renter density is 12.5%. This means that out of every 100 units, approximately 12.5 units are occupied by renters. Given the annualized FMR of $11,880, if a landlord were to receive this amount for each Section 8 unit, the gross yield would be directly tied to the number of units they manage. For instance, if a landlord has 10 units, and 1.25 of these units are rented under Section 8, the total annual rental income from Section 8 tenants would be $14,850 (1.25 units * $11,880).
However, without a specific market rent figure or median home value, it's challenging to provide a precise gross yield. In the absence of market rent data, we must rely on the FMR as the basis for our analysis. If the actual market rent were higher than the FMR, the gross yield would also be higher, making investments more attractive for landlords.
The days on market (DOM) data is also not available, which is typically important for understanding how quickly properties can be leased. With a 12.5% renter density, landlords should consider the time it might take to lease a property under Section 8, especially if the demand for housing assistance is high relative to supply.
In conclusion, while the exact gross yield cannot be calculated due to missing data points, the annualized FMR of $11,880 per Section 8 unit offers a baseline for potential rental income. Landlords and investors should use this figure to estimate their potential earnings, keeping in mind that the actual gross yield could be higher if market rents exceed the FMR. The 12.5% renter density suggests a moderate level of demand for rental properties, which is a positive sign for those considering Section 8 investments in ZIP 79230.
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.