Location: Lubbock, 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 | $830 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $131,918 | 0.88% | C |
| 3BR | $1,610 | $156,921 | 1.03% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 79401, located in Lubbock, TX, involve understanding the balance between the Safety Net Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1150. This figure represents the maximum amount that the Section 8 program will pay for rent in this specific ZIP code. However, it's important to note that the local market rent, as measured by the Zillow Observed Rent Index (ZORI), is currently $1,059.
A landlord participating in the Section 8 program should be aware that the total reimbursement they receive includes both the tenant's portion of the rent and utility allowances. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards rent. The remaining amount up to the SAFMR is covered by the housing authority. Utility allowances vary but are designed to cover the average cost of utilities in the area. In ZIP 79401, these allowances can range from $100 to $300 per month depending on the specifics of the case.
To illustrate, if a tenant's portion of the rent is $300 and the utility allowance is $200, then the total reimbursement to the landlord would be $650 from the tenant and $500 from the housing authority, summing up to $1150. This means the landlord receives the full SAFMR amount even if the tenant's share is less than the standard 30%. It's crucial for landlords to understand that the reimbursement is capped at the SAFMR, which in this case is $1150 for a two-bedroom unit.
Given that the local market rent is $1,059, landlords might wonder about the financial implications. In ZIP 79401, landlords will typically find themselves with a surplus of $91 per month ($1150 - $1059) when renting out a two-bedroom apartment under the Section 8 program. This surplus occurs because the SAFMR exceeds the current local market rent. Landlords should use this information to make informed decisions about participating in the Section 8 program, considering both the financial benefits and potential administrative requirements.
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.