Location: Shackelford County, 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $215,601 | 0.69% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 79504 in Shackelford County, TX, reveals several key points for potential real estate investors focusing on Section 8 housing.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 79504 in fiscal year 2024 is set at $910. In comparison, the Census ACS reports a market rent of $639. This indicates that landlords can expect a higher rental income through Section 8 contracts than what the current market offers, making the rent math favorable for those willing to participate in the program.
Regarding the affordability of acquisitions, the median home value in ZIP 79504 is $191,853. However, due to the lack of data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to assess the overall ease of acquiring properties. Landlords should be prepared for potentially less liquid market conditions but can still find affordable homes compared to larger metropolitan areas.
The third point concerns tenant demand. With a total population of 2,969, and 24.2% of residents being renters, there is a steady demand for rental housing in the area. While the renter share is relatively low, the Section 8 program can attract a reliable tenant base, ensuring occupancy rates remain stable.
Verdict: ZIP 79504 presents an opportunity for landlords and small-portfolio investors looking to leverage Section 8 contracts. The higher FMR compared to market rents ensures better financial returns. Although the acquisition process might face some challenges due to limited liquidity data, the median home values are reasonable. Additionally, the consistent demand from the local tenant pool, coupled with the guaranteed income from the Section 8 program, makes this ZIP code a viable investment option.
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.