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 | $69,529 | 1.52% | A+ |
| 3BR | $1,480 | $121,342 | 1.22% | A |
| 4BR | $1,750 | $298,682 | 0.59% | F |
U.S. Census Bureau data (2024)
Lubbock, TX's ZIP code 79415 is a densely populated neighborhood with a significant portion of its residents being renters. The area has a total population of 15,794, with 62.9% of the residents renting their homes. This high percentage of renters indicates a strong demand for rental properties in the region.
The median income in ZIP 79415 is $36,468, which is relatively low compared to national averages. This economic profile suggests that many residents may be eligible for housing assistance programs such as Section 8. The median home value stands at $98,541, reflecting an affordable market for both homeowners and investors looking to enter the real estate sector in this area.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 79415 as of the fiscal year 2024 is set at $1,040. In contrast, the actual market rent, measured by the Zillow Observed Rent Index (ZORI), is $866. This difference highlights a potential opportunity for landlords and small-portfolio investors who can leverage the higher FMR to secure Section 8 tenants, thereby ensuring a steady stream of income.
Given these economic conditions, ZIP 79415 would suit both hands-off voucher operators and hands-on value-add buyers. For those preferring a hands-off approach, the gap between the FMR and ZORI provides a cushion for maintaining profitability while minimizing tenant turnover risk. On the other hand, hands-on investors could capitalize on the lower market rents by improving property values through renovations or upgrades, potentially attracting higher-paying tenants or increasing the likelihood of securing Section 8 vouchers.
In conclusion, ZIP 79415 offers a mix of affordability and demand that makes it attractive for Section 8 investments. Whether aiming for passive income or active property management, the economic indicators point towards a favorable environment for real estate investment in this part of Lubbock.
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.