Location: Dawson County, TX | Metro: Lynn County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The ZIP code 79351 presents a unique opportunity for real estate investors looking to balance yield and stability. With a Fair Market Rent (FMR) of $970 for Section 8 properties in fiscal year 2024, it significantly outpaces the market rent of $658. This indicates a strong potential for higher yields when compared to conventional rental properties in the area.
To assess stability, consider the following metrics: 24.7% of residents are renters, and the median household income stands at $66,853. The percentage of renters suggests a moderate demand for rental housing, which can be a reliable indicator of occupancy rates. However, the lack of data on days on market (DOM) makes it difficult to gauge how quickly properties might be rented or vacated, adding some uncertainty to the stability assessment.
The disparity between the FMR and the market rent signals a high-yield environment. For instance, a landlord could potentially lease a property to a Section 8 tenant at $970, while the same property would fetch only $658 in the open market. This difference translates into an additional $312 per month, or $3,744 annually, per unit. This is particularly attractive for those interested in maximizing returns on investment.
Despite the high yield, the market's stability is somewhat compromised due to limited data points. The 24.7% rental rate implies that there is a decent portion of the population that relies on renting, but without knowing the DOM, it's challenging to predict the turnover rate and its impact on cash flow. Additionally, the median income figure of $66,853 provides some assurance that tenants can afford their rents, but it does not guarantee long-term stability.
In conclusion, ZIP 79351 leans towards being a high-yield market, driven by the substantial gap between FMR and market rent. However, the stability remains questionable due to the absence of critical data such as DOM. Investors should focus on properties that can attract Section 8 tenants while keeping an eye on the local rental market dynamics to ensure steady cash flow.
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.