Location: Terry County, TX | Metro: Lynn County, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 79373 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $910 per month for fiscal year 2024. This figure is specific to this ZIP code, reflecting the unique housing market conditions here.
Local market rents, according to the Census ACS, average $967 per month for a similar unit. This indicates that the SAFMR is slightly below the current market rates, which can be a consideration for landlords when deciding whether to participate in the program.
A Section 8 voucher is designed to cover most of the rent, but not all. The Housing Authority determines the tenant's contribution based on their income. Typically, the tenant must pay 30% of their adjusted monthly income toward rent. For example, if a tenant has an adjusted monthly income of $1,500, they would pay $450 toward rent.
The remainder of the rent is covered by the government through the voucher. Using the SAFMR of $910, if a tenant pays $450, then the voucher would cover the difference, which is $460. Utility allowances vary but are usually around $150-$200 per month. These allowances are additional payments made directly to the landlord to help cover the cost of utilities.
Landlords should note that the actual reimbursement amount will depend on the specific tenant's income. However, the total reimbursement from the voucher plus the tenant's payment cannot exceed the SAFMR of $910. If the market rent is higher than the SAFMR, landlords will face a shortfall. In ZIP 79373, where the market rent is $967, landlords would typically see a reimbursement gap of $57 per month for a two-bedroom unit.
To illustrate, if a landlord charges $967 for a two-bedroom unit and the tenant contributes $450, the voucher would cover up to $460. This leaves a gap of $57 that the landlord does not receive. Conversely, if the landlord charges less than $910, there would be a surplus in reimbursement, but it's unlikely given the local market rates.
In summary, landlords in ZIP 79373 can expect to receive a total of $910 for a two-bedroom unit under Section 8, which includes both the tenant's payment and the voucher reimbursement. With the local market rent at $967, landlords will have a reimbursement gap of $57 per month unless they adjust their rental rates accordingly.
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.