Location: Motley County, TX | Metro: Briscoe County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 79255 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area for fiscal year 2026 is set at $1,040, while the Census ACS reports the market rent at $685. This represents a gap of $355, or approximately 52%, between what landlords can charge through the Section 8 program and the current market rate.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should view this ZIP code as a yield play. By participating in the Section 8 program, they can secure rental incomes that are higher than the prevailing market rates, thereby increasing their cash flow and overall investment returns. However, it's important to consider the implications of this disparity. The high FMR relative to the market rent suggests that voucher tenants might find it easier to secure housing in this area compared to others where the FMR is closer to or below the market rent.
In ZIP 79255, 17.1% of residents are renters, indicating a smaller rental market compared to some other areas. The median household income stands at $54,375, which provides some insight into the economic profile of the area. Despite the lack of data on median home values, the income figure suggests that a portion of the population may struggle to afford housing at the FMR levels, making the Section 8 vouchers particularly attractive to those seeking housing.
Landlords who choose to accept Section 8 vouchers in this ZIP code will benefit from a steady stream of government-subsidized rent payments. These payments will be higher than the typical market rate, potentially leading to better financial performance. However, the decision to participate must also weigh the administrative burdens and potential challenges associated with managing subsidized housing units.
To summarize, the gap between the FMR and market rent in ZIP 79255 presents an opportunity for landlords to increase their yields. With voucher tenants willing to pay the higher FMR, there is a clear financial incentive to participate in the Section 8 program, especially given the lower market rent and the economic conditions of the area.
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.