Section 8 Fair Market Rent (FMR) for ZIP 79412 - 2027

Location: Lubbock, TX | Metro: Lubbock, TX HUD Metro FMR Area

Investment Score for ZIP 79412

Monthly Rent (2BR)

$1,090

Median Price (2BR)

$79,583

1% Rule

1.37%

Annual Yield

16.44%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$780
1 Bedroom	$920
2 Bedrooms	$1,090
3 Bedrooms	$1,510
4 Bedrooms	$1,800
5 Bedrooms	$2,088
6 Bedrooms	$2,339
7 Bedrooms	$2,526
8 Bedrooms	$2,652

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,090	$79,583	1.37%	A
3BR	$1,510	$129,047	1.17%	B
4BR	$1,800	$175,394	1.03%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,018

Median Household Income

$48,878

Housing Units

6,378

Renter Percentage

51.2%

Occupancy Rate

87.2%

Renter Occupied

2,845

Lubbock, TX, specifically ZIP code 79412, is a vibrant area that offers significant opportunities for real estate investors interested in the Section 8 housing market. This neighborhood is characterized by a mix of residential properties and a growing population, making it a prime location for both landlords and small-portfolio investors.

The Fair Market Rent (FMR) for ZIP 79412 for fiscal year 2024 is set at $980 per month, providing a benchmark for rental rates in subsidized housing.
The market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $900 per month, reflecting the average rental price in the area without subsidies.
The median home value in the area is $117,362, which is relatively low compared to many other parts of Texas, offering affordable entry points for investors.
Renters make up 51.2% of the local housing market, indicating a substantial demand for rental properties.
The median income in ZIP 79412 is $48,878, suggesting that a portion of the residents may qualify for Section 8 assistance.
The days on market (DOM) for properties is not available, but given the high renter share, it's likely that properties are turning over quickly once listed.

Investors looking to enter the Lubbock, TX, market should take note of the favorable conditions presented by ZIP 79412. With a high percentage of renters and a median income that aligns well with Section 8 qualifications, there is a strong potential for steady rental income. The gap between the Fair Market Rent and the ZORI suggests a competitive advantage for those who can offer quality rentals at or near the subsidized rate. The low median home values indicate that purchasing properties could be cost-effective, while the high renter share implies a robust demand for rental units. Overall, the area presents a solid opportunity for those willing to invest in properties that cater to the needs of subsidized housing tenants.

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.