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 | $119,294 | 1.21% | A |
| 3BR | $1,990 | $193,647 | 1.03% | B |
| 4BR | $2,380 | $267,159 | 0.89% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 79413 in Lubbock, TX, reveals a market that offers a balance between yield and stability. With a Fair Market Rent (FMR) of $1,310 for fiscal year 2024, compared to the market rent of $1,459, it suggests a modest premium for market-rate rentals over government-subsidized rates. This premium indicates potential for higher yields when operating outside of purely subsidized housing.
The median home value in ZIP 79413 is $193,340. Given this figure, combined with the FMR and market rent, the area is not indicative of a high-yield, low-stability "flip-style" market, which typically involves rapid property appreciation and turnover. Instead, it presents a scenario where rental properties can generate consistent cash flow without the volatility associated with speculative real estate investments.
The stability of the market is further supported by the fact that 43.9% of residents are renters, indicating a substantial demand for rental properties. The Days on Market (DOM) average of 37 days suggests that properties are relatively easy to lease out, reducing the risk of vacancy. Additionally, the median household income of $69,400 provides a basis for understanding the economic capacity of the residents to pay rent, thereby supporting the stability of the rental market.
Considering these factors, ZIP 79413 leans towards being a steady-cashflow zone. The combination of a reasonable rental premium and strong rental demand, along with manageable vacancy risks, points to an environment where landlords and small-portfolio investors can expect reliable returns. However, the relatively lower median home value compared to the income levels suggests there might be some room for growth in property values, but not at the level typically seen in high-yield markets.
To summarize, the key figures driving this conclusion are the FMR and market rent rates, the percentage of renters, the DOM average, and the median household income. These metrics collectively indicate a stable rental market with solid, but not exceptional, yield potential.
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.