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 | $86,145 | 1.23% | A |
| 3BR | $1,480 | $114,199 | 1.3% | A |
U.S. Census Bureau data (2024)
The real estate market in ZIP 79411, Lubbock, TX, presents a unique setup that signals a cautious approach to pricing power over the next 12-24 months. With a median home value of $98,337, the area remains highly affordable, attracting first-time buyers and investors alike. However, the fact that only 0.2% of listings have reduced their prices indicates a relatively stable market where sellers maintain a firm stance on their asking prices.
The median Days on Market (DOM) being listed as N/A suggests either a very low number of listings or a rapid turnover of properties, both scenarios pointing towards a competitive buyer's market. This competition among buyers can temporarily bolster seller confidence, but it also highlights the potential vulnerability to shifts in demand or economic conditions.
On the rental side, the Federal Market Rent (FMR) for ZIP 79411 in fiscal year 2024 is set at $1,030, while the Zillow Observed Rent Index (ZORI) stands at $1,099. This gap between the FMR and the actual market rent suggests that the rental market is slightly outperforming the federal benchmark, indicating a moderate demand for rental properties. However, the gap is not substantial enough to signal strong upward pressure on rents, which could impact the overall investment attractiveness of the area.
For long-hold investors, the setup implies a realistic appreciation thesis based on the stability of the local economy and the continued affordability of housing. The median home value, combined with the low percentage of price reductions, suggests that while significant growth might not be imminent, the risk of depreciation is also minimal. Investors should focus on the long-term value of owning property in an area with steady demand and manageable competition.
Moreover, the slight premium in market rents over the FMR provides a buffer against potential downturns in the housing market, ensuring that rental income remains a reliable source of cash flow. This balance between housing and rental markets creates a stable environment for those looking to hold properties for extended periods.
In summary, ZIP 79411 offers a blend of affordability and stability, making it a suitable location for investors seeking a steady stream of rental income and modest appreciation over time. The current market signals a need for patience and strategic planning rather than aggressive price setting or short-term speculation.
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.