Location: Kent County, TX | Metro: Lubbock, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
ZIP code 79370, located in Spur, TX within the Kent County area, presents a unique opportunity for inclusion in a Section 8 portfolio strategy. Given the specific dollar figures provided, this area stands out as a potential cash-flow anchor.
The Federal Market Rent (FMR) for ZIP 79370 in fiscal year 2024 is set at $920, which represents the maximum allowable rent for Section 8 housing vouchers. This is notably higher than the current market rent of $765, indicating a spread of $155. This positive differential means that landlords participating in the Section 8 program can expect to receive a higher rental income than what the local market typically offers, thus providing a stable and potentially above-average cash flow.
In addition, the median home value in ZIP 79370 is $91,651, which is relatively low compared to other areas within the same metropolitan region. This suggests that the acquisition cost of properties in this area might be lower, making it easier for landlords to build their portfolio without significant capital investment.
However, it's important to note that ZIP 79370 does not offer strong potential as an appreciation play. The data provided indicates a lack of significant price increases or short days on market (DOM), suggesting that property values are unlikely to rise dramatically in the near future. Similarly, while the renter share is 17.4%, and the median income is $48,750, these factors do not necessarily make ZIP 79370 a strong candidate for diversification within a real estate portfolio. Instead, they highlight a demographic where a significant portion of the population relies on rental assistance programs such as Section 8.
Therefore, ZIP 79370 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can leverage the higher FMR relative to market rents to ensure steady and reliable income streams, while the low median home value allows for strategic acquisitions at a lower cost basis.
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.