Location: Gaines County, TX | Metro: Gaines County, TX
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 | $820 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $281,429 | 0.46% | F |
| 4BR | $1,560 | $407,676 | 0.38% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79360 reveals a market that offers a balance between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone. Instead, it presents an opportunity for those who can manage moderate risk for potentially higher returns.
On the yield axis, the Federal Market Rent (FMR) for ZIP 79360 stands at $1,090 for the fiscal year 2026, which is notably higher than the market rent of $854. This suggests that there is potential for rental income to exceed market rates if properties are managed efficiently under Section 8 programs. However, the median home value of $253,694 indicates that the investment cost is relatively high, which could impact the overall yield when considering the initial capital outlay.
Regarding stability, the ZIP code shows that 20.7% of residents are renters, indicating a smaller but still significant rental market presence. The average daily days on market (DOM) figure is not available, which makes it challenging to assess the speed at which properties can be leased. Nevertheless, the median household income of $79,467 provides some assurance that tenants are likely to have the financial means to pay their rent consistently, contributing to the stability of cash flows.
Given these factors, ZIP 79360 leans towards a moderate-risk investment scenario. Landlords and small-portfolio investors should expect a market where they can achieve above-average yields through Section 8 contracts, but must also be prepared to handle a level of risk associated with the smaller rental population and potentially longer leasing periods. The higher FMR compared to market rent is a key driver of this classification, while the median income figure supports the notion of stable tenant payments.
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.