Location: Yoakum County, TX | Metro: Gaines County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79359, located in Yoakum County, Texas, reveals key insights into its viability for real estate investment, particularly for Section 8 landlords and small-portfolio investors.
The rent math does not favorably align. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,020. However, the actual market rent based on Census ACS data stands significantly lower at $661. This disparity suggests that landlords relying solely on market rents will not achieve the higher income levels associated with Section 8 tenancy, which requires rents to be at least equal to the FMR.
Acquisition costs are relatively low in this ZIP code, with a median home value of $121,139. While this makes purchasing property potentially affordable, the lack of data regarding days on market (DOM) and the percentage of homes requiring price cuts indicates limited insight into how quickly properties sell and at what price point. This uncertainty could pose risks for investors looking to turn a quick profit through resale.
Tenant demand is present but not overwhelming. With a total population of 3,294, 35.3% of residents are renters. This means approximately 1,162 individuals are actively seeking rental housing. Given the size of the population, the number of potential tenants is modest but sufficient to support a small portfolio of rental units.
Verdict: ZIP 79359 offers an affordable entry point for acquiring real estate assets, making it suitable for investors who can secure Section 8 contracts to offset the gap between market rents and the required FMR. However, the mismatch between the FMR and market rent poses a challenge for those without access to subsidized programs. Tenant demand is present, though limited by the small population size, suggesting that while there is room for a niche rental market, growth potential may be constrained. Investors should proceed with caution, focusing on securing Section 8 contracts to ensure financial feasibility and consider diversifying their portfolio to mitigate risk.
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.