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 | $760 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $64,513 | 1.64% | A+ |
| 3BR | $1,480 | $109,429 | 1.35% | A |
| 4BR | $1,750 | $241,832 | 0.72% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 79403, Lubbock, TX, presents a nuanced landscape for both landlords and small-portfolio investors. The median home value stands at $100,644, indicating a relatively affordable market compared to national averages. This figure, combined with the observation that only 0.2% of listings have reduced their prices, suggests strong pricing power in the near term. The fact that the median days on market (DOM) is not available points to a highly active market where homes are selling quickly, often before reaching typical DOM metrics.
On the rental side, the Federal Market Rent (FMR) for ZIP 79403 is set at $990 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a market rent of approximately $1,168. This disparity highlights a potential opportunity for landlords who can leverage the higher market rents, especially when considering the lower median home values. The gap between FMR and ZORI suggests that there might be room for landlords to maintain or even slightly increase rents without significant pushback from tenants, given the robust demand implied by the low DOM and minimal price reductions.
For long-term investors, the setup in ZIP 79403 implies a stable but modest appreciation thesis. The combination of low home values and a rapidly selling market signals a healthy local economy capable of supporting property values. However, the limited reduction in listing prices and the quick sale times suggest that the market may be nearing a saturation point, where further rapid appreciation could be constrained. Long-term investors should expect steady growth rather than explosive increases in property values, aligning their investment strategies with a focus on rental income and moderate capital appreciation.
A summary of the key points:
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.