Section 8 Fair Market Rent (FMR) for ZIP 79416 - 2027
Location: Lubbock, TX | Metro: Lubbock, TX HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $980 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,250 |
| 5 Bedrooms | $2,610 |
| 6 Bedrooms | $2,923 |
| 7 Bedrooms | $3,157 |
| 8 Bedrooms | $3,315 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$63,896
Housing Authorities Serving ZIP 79416
To determine if you should buy in ZIP 79416 (Lubbock, TX) for Section 8 investment, follow this decision tree:
- Does the Fair Market Rent ($1270) cover the debt service on a $203,993 property?
- If yes: Proceed to the next question. The FMR of $1270 must exceed the monthly mortgage payment, including principal, interest, taxes, and insurance.
- If no: Do not invest in this area for Section 8 properties. The FMR of $1270 is insufficient to cover the debt service on a $203,993 property, making it financially unviable.
- Is the market rent ($1,443 ZORI) above, at, or below the FMR?
- If above: This indicates strong market demand. The ZORI of $1,443 suggests that market rents are higher than the FMR, which means that there is potential for profit beyond Section 8 limits.
- If at: Market conditions are aligned with Section 8 rates. The ZORI of $1,443 is close to the FMR, indicating that market rents match Section 8 rates closely, making it a neutral scenario for profitability.
- If below: There may be limited profit outside of Section 8. The ZORI of $1,443 being below the FMR suggests that market rents are lower, potentially limiting the ability to charge more than the FMR.
- Are 51.5% renters + 39-day DOM enough demand?
- If the percentage of renters is high and the days on market (DOM) is low: There is sufficient demand. With 51.5% of residents being renters and an average DOM of 39 days, the rental market is robust, indicating that properties will likely be occupied quickly.
- If either the percentage of renters is low or the DOM is high: Demand is insufficient. A lower percentage of renters or higher DOM would suggest a weaker rental market, making it harder to find tenants for Section 8 properties.
In conclusion, if the FMR of $1270 covers the debt service on a $203,993 property, and the ZORI of $1,443 is above or at the FMR, coupled with a high percentage of renters (51.5%) and a low DOM (39 days), then you should consider investing in ZIP 79416 for Section 8 properties. Otherwise, the investment does not meet the criteria for a profitable Section 8 portfolio in this area.
Data Sources: FMR data from HUD (2027). 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.