Location: Hockley County, 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 | $880 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $141,694 | 0.86% | C |
| 3BR | $1,690 | $266,324 | 0.63% | D |
| 4BR | $2,020 | $447,516 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 79363, encompassing Shallowater, TX, presents a dynamic housing market with clear indications of how supply and demand interact. The Fair Market Rent (FMR) for the area is set at $1020 for fiscal year 2024, while the actual market rent, as reported by the Census American Community Survey (ACS), stands slightly higher at $1,124. This suggests that the market is slightly above the government's benchmark, indicating a healthy level of demand.
A critical metric for understanding market conditions is the price-cut share, which is currently at 0.2%. This figure implies that very few properties are being discounted, a sign that the supply is closely matching or slightly lagging behind demand. If there were an oversupply, we would likely see a higher percentage of homes being listed at reduced prices to attract buyers.
The median home value in the area is $296,137, reflecting the overall affordability and desirability of homeownership in Shallowater. However, the 19.9% renter share provides insight into the long-term housing dynamics. With nearly one-fifth of residents choosing to rent, it indicates a persistent housing pressure where some individuals prefer or can only afford rental options. This could be due to various factors such as job instability, student populations, or transient workers, but it also means that there is a steady need for rental units.
The lack of available data on days on the market (DOM) makes it challenging to assess how quickly properties are selling. However, given the low price-cut share, it's reasonable to infer that homes are moving relatively quickly, suggesting that the market is active and responsive to changes.
In summary, ZIP 79363 is a market where demand is robust, evidenced by rents slightly exceeding the FMR and a low price-cut share. The significant renter share points to ongoing housing pressure, which could create opportunities for landlords and small-portfolio investors looking to capitalize on the rental market's vitality. The current conditions suggest that the market is balanced, with demand possibly edging out supply, making it an attractive area for investment.
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.