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 | $790 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $64,928 | 1.69% | A+ |
| 3BR | $1,520 | $107,459 | 1.41% | A |
| 4BR | $1,820 | $187,511 | 0.97% | C |
U.S. Census Bureau data (2024)
Lubbock, TX's ZIP code 79404 stands out due to its unique demographic and economic characteristics. With a population of 8,529 residents, it has a rental rate of 31.0%, indicating a significant portion of the community relies on rented housing. The median income in this ZIP code is $51,630, while the median home value is notably higher at $98,516. This suggests that homeownership is relatively expensive compared to the average income, potentially making rental properties more attractive.
The voucher economics in ZIP 79404 are particularly noteworthy. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $920, whereas the market rent, measured by ZORI (Zillow Observed Rent Index), is $1,283. This disparity means that landlords accepting Section 8 vouchers can expect lower rents compared to the market rate, but they benefit from guaranteed payments and stable tenancy.
The data signature of ZIP 79404 reads as stable. The relatively high median home value coupled with a moderate rental rate indicates a balanced market where both renters and homeowners coexist. The voucher system, with its defined FMR, provides a predictable source of income for landlords, which can be advantageous in a stable housing market. However, the gap between FMR and ZORI also suggests potential challenges for those seeking market-rate rentals, possibly leading to transitional dynamics within the rental sector.
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.