Location: Terry County, TX | Metro: Lynn County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,320 |
| 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 ZIP code 79316 in Terry County, TX, reveals several key points for landlords and small-portfolio investors.
The rent math does not favorably align with the Federal Market Rent (FMR) set at $910 for the fiscal year 2024, compared to the market rent of $818 as reported by the Census ACS. This indicates that properties in this area may struggle to meet the rent requirements set by government programs like Section 8, potentially leading to lower occupancy rates among subsidized tenants.
Acquisition appears to be relatively affordable, with a median home value of $120,881. The lack of available data on days on market (DOM) and the low percentage of homes needing price cuts (0.3%) suggest a stable housing market where homes do not typically linger on the market long or require significant discounts to sell. However, the exact DOM figure would provide clearer insight into how quickly properties can be turned over or acquired.
Tenant demand is present but could be limited. With a total population of 10,055, and 34.2% of residents being renters, there are approximately 3,439 potential rental tenants in the area. This number provides a baseline for understanding the size of the rental market, though it's crucial to consider the local economy and job market to gauge the sustainability of this demand.
In summary, while the acquisition cost in ZIP 79316 is reasonably low, the discrepancy between the FMR and the actual market rent poses a challenge for Section 8 participation. The presence of a modest renter base suggests some demand, but the alignment with government rent standards remains a critical issue. Landlords and investors should proceed with caution, focusing on properties that can achieve the higher FMR or finding alternative strategies to balance costs and income expectations.
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.