Location: Hockley County, TX | Metro: Hockley County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The median home value in ZIP code 79353, located in Pep, Texas, stands at $118,746 according to recent data. This figure is notably lower than the US median home value of $393,134, indicating that the real estate market in this area is relatively affordable.
To provide a rough Section 8 cap-rate picture for ZIP 79353, we need to consider the annualized Fair Market Rent (FMR) for a two-bedroom unit, which is set at $990 for FY 2026, based on the metropolitan guidelines. Given the median home value of $118,746, this implies a gross yield of approximately 10.9%. However, this calculation assumes the entire property value is financed and does not account for operating expenses, vacancy rates, or other factors that would affect the net operating income (NOI).
The market rent data for ZIP 79353 is currently unavailable. However, the median gross rent for the area has historically been around $700 per month, according to recent estimates. If we use this historical average, the implied gross yield would be approximately 7.8%. This figure is derived from multiplying the $700 monthly rent by 12 months, resulting in an annual rent of $8,400, and dividing it by the median home value of $118,746.
Given the 64.5% renter density in ZIP 79353, it is likely that a significant portion of the rental market could be supported by Section 8 vouchers. The gross yield comparison between the FMR-based scenario (10.9%) and the historical market rent scenario (7.8%) suggests that the FMR-based yield is more optimistic. However, the historical market rent scenario is more realistic due to the current lack of specific market rent data for the area.
The N/A-day Days on Market (DOM) indicates that properties are typically listed for a period that is not explicitly reported, but the high renter density implies a robust demand for rental units, potentially leading to shorter listing periods.
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.