Section 8 Fair Market Rent (FMR) for ZIP 79414 - 2027

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

Investment Score for ZIP 79414

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$101,600

1% Rule

1.2%

Annual Yield

14.41%

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	$880
1 Bedroom	$1,030
2 Bedrooms	$1,220
3 Bedrooms	$1,690
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

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	$1,220	$101,600	1.2%	A
3BR	$1,690	$159,144	1.06%	B
4BR	$2,020	$188,599	1.07%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

17,596

Median Household Income

$49,057

Housing Units

9,260

Renter Percentage

65.4%

Occupancy Rate

90.9%

Renter Occupied

5,510

To determine if you should buy in ZIP 79414 (Lubbock, TX) for Section 8, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1,110 cover the debt service on a property valued at $151,293?
- Yes: The FMR of $1,110 is sufficient to cover the debt service on a property valued at $151,293. This means that the rental income can meet the mortgage obligations and other financing costs.
- No: The FMR of $1,110 does not cover the debt service on a property valued at $151,293. This would make the investment unprofitable under Section 8 without additional subsidies or cost reductions.
Step 2: Compare the Zillow Observed Rental Index (ZORI) of $1,173 to the FMR of $1,110.
- ZORI is above FMR: With a ZORI of $1,173, market rents exceed the FMR of $1,110. This indicates that landlords could potentially charge higher rents outside of Section 8, which might be beneficial depending on your investment strategy.
- ZORI is at or below FMR: Since the ZORI is above the FMR, this scenario does not apply. However, if the ZORI were equal to or lower than the FMR, it would suggest that market conditions are closely aligned with Section 8 rates, reducing the incentive to seek non-Section 8 tenants.
Step 3: Assess the demand for rentals with 65.4% of residents being renters and an average days on market (DOM) of 27 days.
- It depends: The high percentage of renters (65.4%) suggests strong demand. However, the average DOM of 27 days needs to be considered. A shorter DOM can indicate a competitive market where properties are rented quickly, but it also implies that there may be enough supply to meet the demand, possibly keeping rental prices stable or slightly below market rates.

If the FMR covers the debt service and the ZORI is above the FMR, then the answer is yes, you should consider buying in ZIP 79414 for Section 8. High renter percentages coupled with quick rental times further support this decision, indicating a robust local rental market. However, ensure you factor in all operating expenses and potential vacancy rates before making a final decision.

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.