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 | $970 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,710 | $289,831 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 79508, located in Taylor County, Abilene, TX MSA, presents a nuanced opportunity for real estate investors. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1,000, whereas the average market rent, according to the latest Census ACS data, stands at $1,179. This indicates that properties participating in the Section 8 program will generally experience marginal cash flow at the FMR rate, given the higher market rents.
To further analyze the investment potential, consider the median home value in ZIP 79508, which is $247,613. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $1,179, the annual rental income would be approximately $14,148. This translates to a rent-to-price ratio of roughly 5.7%, suggesting that rental income alone may not fully cover the cost of owning a property in this market, especially when factoring in maintenance, taxes, and other expenses.
The dynamics between renting and buying in this area do not significantly impact the decision-making process for investors, as the median Days on Market (DOM) and the percentage of price cuts are not available. However, this does not detract from the viability of Section 8 investments, which can offer stable long-term returns due to the guaranteed nature of the voucher program.
The strongest angle for investors in ZIP 79508 is stability. While cash flow may be modest, the consistent demand for affordable housing and the security of government-backed vouchers provide a reliable stream of income without the volatility often seen in the private rental market.
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.