Location: Lubbock, TX | Metro: Lubbock, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $153,310 | 0.97% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79350 in the Lubbock, TX HUD Metro FMR Area reveals several key points for potential real-estate investments focused on Section 8 tenants.
The rent math does not work favorably due to the lack of available market rent data. The Fair Market Rent (FMR) set at $920 for fiscal year 2024 must be compared against actual market rates to determine if it meets the needs of landlords and small-portfolio investors. Without specific market rent figures, it's challenging to assess whether the FMR is sufficient to cover operational costs and provide a reasonable profit margin.
Acquisition in this area is relatively affordable with a median home value of $142,619. However, the absence of data regarding the average days on market (DOM) and the percentage of homes that have had their prices cut makes it difficult to gauge how quickly properties can be sold and at what price point. This uncertainty could impact the overall investment strategy and expected returns.
Tenant demand is low in ZIP 79350. With a total population of 296, only 2.2% are renters. This translates to a mere 6.512 tenants, which is an impractically small number for most real-estate investments. Such a limited pool of potential tenants poses significant challenges in maintaining occupancy rates and securing steady rental income.
In conclusion, ZIP 79350 presents a less attractive investment opportunity for Section 8-focused real estate. The rent math cannot be fully evaluated without market rent data, although the median home value suggests affordability. However, the critical issue lies in the extremely low tenant demand, which would likely result in high vacancy rates and financial instability for landlords and small-portfolio investors. The scarcity of renters means that even if the acquisition cost is favorable, sustaining a viable rental business would be challenging due to the limited number of eligible Section 8 tenants in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.