Location: Abilene, TX | Metro: Abilene, TX MSA
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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $161,800 | 0.92% | C |
U.S. Census Bureau data (2024)
The potential downsides of investing in ZIP 79501 under the Section 8 program are significant. Tenant turnover is a major concern due to the substantial gap between the market rent of $771 and the Fair Market Rent (FMR) set at $1060 for FY 2024. This disparity can lead to higher tenant churn rates as individuals seek out more affordable housing options. Additionally, vacancy exposure is a risk factor given the lack of data on days on market (DOM), which makes it difficult to predict how long properties might remain vacant. The typical home value in ZIP 79501 is $139,713, while the median income stands at $55,430, indicating that many residents may struggle to afford maintenance costs without assistance, thereby increasing the likelihood of deferred maintenance issues.
Despite these challenges, there are mitigating factors that make ZIP 79501 an attractive investment for Section 8 landlords. The renter share of the population is 18.3%, which is notably high. High renter density generally correlates with increased demand for housing vouchers, thus providing a steady stream of tenants who can reliably pay their rent through the Section 8 program. This ensures a consistent income flow, reducing the overall financial risk associated with rental vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.