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 | $1,040 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $145,712 | 0.99% | C |
| 3BR | $1,990 | $193,704 | 1.03% | B |
| 4BR | $2,380 | $268,055 | 0.89% | C |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 79410 in Lubbock, TX, are significant. Tenant turnover is a primary concern, as the market rent stands at $1,506 compared to the Fair Market Rent (FMR) of $1,340 for fiscal year 2024. This disparity can lead to frequent changes in occupancy, which increases administrative burdens and operational costs. Landlords must be prepared for higher tenant turnover rates due to the difference between market and FMR rents.
Vacancy exposure is another critical issue. With an average Days on Market (DOM) of 69 days, properties may remain vacant longer than desired, leading to lost rental income during these periods. This extended vacancy period can strain cash flow and reduce overall profitability.
Deferred maintenance is also a risk factor. The typical home value in ZIP 79410 is $184,153, while the median household income is $44,537. Given the relatively low income levels, tenants may lack the financial resources to address property maintenance issues promptly, potentially leading to increased repair and maintenance expenses for the landlord.
However, these risks are offset by several favorable conditions. The renter share in the area is a robust 67.7%, indicating a high concentration of renters. This high renter density typically translates into a greater demand for housing vouchers, which can provide a steady stream of qualified tenants willing to pay the FMR rate. As such, the likelihood of finding and retaining tenants who qualify for Section 8 assistance is relatively high.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.