Section 8 Fair Market Rent (FMR) for ZIP 79312 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When evaluating whether to purchase a property in ZIP code 79312 for Section 8 purposes, follow this decision tree:

• Step 1: Determine if the Fair Market Rent (FMR) of $970 can cover the debt service on a $95,430 property. To do this, calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $510. The FMR of $970 clearly exceeds this amount, leaving a buffer of $460 per month. This buffer can be used to cover other expenses such as property taxes, insurance, and maintenance.
• Step 2: Compare the market rent of $779 (from Census ACS) with the FMR. The market rent is below the FMR, indicating that properties priced at the FMR level will likely be attractive to tenants. However, landlords should be cautious about setting rents too high above the market rate, as it could reduce demand.
• Step 3: Assess the rental demand. With 29.7% of residents being renters and the days on market (DOM) status marked as N/A, there is a moderate rental population but insufficient data to determine how quickly units are typically rented. If you find additional sources confirming low DOM, this suggests strong demand. Otherwise, it depends on local market conditions and competition.

Decision Path:

• If the answer to Step 1 is yes, proceed to Step 2.
• In Step 2, if market rent is significantly below FMR, proceed to Step 3. If it's close to or above FMR, reconsider the investment as it might not attract enough tenants.
• In Step 3, if there's strong evidence of low DOM and high demand, the answer is yes. Otherwise, it depends on further investigation into local vacancy rates and tenant preferences.

The FMR provides a solid basis for covering costs, and the market rent being below FMR indicates potential attractiveness to tenants. However, without precise DOM data, the final decision hinges on the overall rental market dynamics in 79312. Landlords must weigh these factors carefully before committing to a purchase.

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.