Section 8 Fair Market Rent (FMR) for ZIP 79423 - 2027

Investment Score for ZIP 79423

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	$1,010
1 Bedroom	$1,180
2 Bedrooms	$1,400
3 Bedrooms	$1,940
4 Bedrooms	$2,320
5 Bedrooms	$2,691
6 Bedrooms	$3,014
7 Bedrooms	$3,255
8 Bedrooms	$3,418

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	$1,400	$162,145	0.86%	C
3BR	$1,940	$210,871	0.92%	C
4BR	$2,320	$394,977	0.59%	F
5BR	$2,691	$581,351	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 79423 (Lubbock, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 79423 in 2026 indicate that a 2-bedroom unit will have an FMR of $1300 per month. This is a critical benchmark for Section 8 voucher holders, who can only rent properties up to this price level. However, the actual rental market in this area may present challenges for voucher holders. According to the data, the Zillow median price for a 2-bedroom property is $159,305, which suggests that the average monthly rent could be significantly higher than the FMR. The price-to-FMR ratio of 10.2x implies that the typical 2BR rental costs about $13,260 annually, which is far above the $1300 monthly limit set by the FMR. Therefore, voucher holders are likely constrained to finding units that are below or near the FMR threshold, potentially limiting their housing options. #### Affordability & Renter Profile ZIP code 79423 has a population of 46,998, with 28.8% of residents being renters. The occupancy rate of 94.0% indicates a relatively tight market where most available units are occupied. Given the median household income of $84,933, the 2BR FMR of $1300 represents 18.4% of the median income, suggesting that the cost of renting a 2BR unit is reasonably affordable for the average resident. However, the high price-to-FMR ratio of 10.2x indicates that the typical rental prices are much higher than the FMR, making it difficult for low-income households to find affordable rentals without assistance. This tight market condition combined with high rental prices means that there is significant competition among renters, particularly those with limited financial resources. #### Investor Angle From an investor’s perspective, the ZIP code 79423 presents a mixed picture. The high occupancy rate and strong demand from renters suggest a robust market for rental properties. However, the price-to-FMR ratio of 10.2x indicates that the typical rental prices are substantially higher than the FMR, which could make it challenging to attract Section 8 voucher holders. For an investor to achieve cash flow positivity, they would need to ensure that their rental properties are priced at or below the FMR levels. Given the FMR for a 2BR unit is $1300, an investor should aim to keep operating costs and mortgage payments low enough to maintain profitability while staying within the voucher limits. The investment grade for this ZIP code can be considered moderate to high risk due to the significant gap between typical rental prices and the FMR. Investors who are willing to focus on lower-priced units and manage their costs effectively may still find opportunities for positive cash flow. However, the limited pool of potential tenants who qualify for Section 8 vouchers could pose a challenge in terms of tenant acquisition and retention. #### Specific Actionable Insights 1. **Focus on Lower-Priced Units**: Investors should consider acquiring properties that can be rented out at or below the FMR levels. For example, a 2BR unit priced at $1300 or less would be attractive to Section 8 voucher holders. This strategy requires careful consideration of acquisition costs and ongoing expenses to ensure profitability. 2. **Utilize Vacant Units**: With an occupancy rate of 94%, there is a small but significant number of vacant units. Investors could target these units, especially if they are currently priced above the FMR, and reposition them to cater to Section 8 voucher holders. This could involve lowering the rent to match the FMR and ensuring the property meets the necessary standards for voucher eligibility. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 79423 is to **Hold**. While there are opportunities to acquire and manage properties that are within the FMR range, the overall market conditions make it challenging to find properties that offer both affordability and profitability. Investors should carefully evaluate the local rental market and consider strategies to lower costs and improve the attractiveness of their properties to Section 8 voucher holders.

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.