Location: Lynn 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 | $780 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $72,012 | 1.51% | A+ |
| 3BR | $1,510 | $162,811 | 0.93% | C |
| 4BR | $1,800 | $365,000 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 79364 in Texas is centered around the $10 difference between the Fair Market Rent (FMR) of $970 and the market rent of $980, based on the latest data from the Census American Community Survey (ACS) for the fiscal year 2024. This represents a 1.02% gap between the two figures.
In this scenario, where the FMR is slightly lower than the market rent, landlords and small-portfolio investors should be aware of the implications of accepting housing voucher tenants. The cost of housing voucher tenants below open-market rates means that landlords will receive a payment of $970 instead of the market rate of $980. This difference can impact the overall yield of an investment property, especially when considering other costs such as maintenance, utilities, and property management.
ZIP 79364 has a rental market where 22.6% of residents are renters, indicating a significant portion of the population relies on rental properties. The median home value in this area is $137,885, while the median income stands at $56,538. These figures provide context for the financial situation of potential tenants and the overall real estate market.
Despite the $10 discrepancy, the FMR still aligns closely with the market rent, suggesting that the financial impact on landlords may be minimal. However, it's crucial to understand that voucher tenants often have additional protections and rights under federal guidelines, which can affect the operational dynamics of a rental property.
Landlords should weigh the benefits of steady, government-backed rental income against the potential drawbacks of lower-than-market rates. For small-portfolio investors, the decision to accept Section 8 vouchers might be influenced by the desire for a stable tenant base, despite the slight reduction in rental revenue.
To summarize, the $10 gap between FMR and market rent in ZIP 79364 is a minor consideration compared to the broader economic factors influencing the real estate market. While the FMR is slightly below the market rent, the overall alignment suggests that the impact on yields will be limited. Landlords and investors must decide whether the stability and predictability of Section 8 tenants outweigh the marginal decrease in rental income.
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.