Section 8 Fair Market Rent (FMR) for ZIP 79512 - 2027

Location: Scurry County, TX | Metro: Mitchell County, TX

Investment Score for ZIP 79512

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$82,113

1% Rule

1.49%

Annual Yield

17.83%

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	$930
1 Bedroom	$930
2 Bedrooms	$1,220
3 Bedrooms	$1,580
4 Bedrooms	$1,760
5 Bedrooms	$2,042
6 Bedrooms	$2,287
7 Bedrooms	$2,470
8 Bedrooms	$2,594

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$82,113	1.49%	A
3BR	$1,580	$136,868	1.15%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,834

Median Household Income

$60,353

Housing Units

3,160

Renter Percentage

21.4%

Occupancy Rate

76.2%

Renter Occupied

514

A decision to invest in ZIP code 79512 (Colorado City, TX) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.

Step 1: Does FMR of $1,190 cover the debt service on a $99,979 property?

If your primary concern is covering the debt service, then the answer is yes. The FMR of $1,190 is likely sufficient to cover the mortgage payments and other expenses associated with a property valued at $99,979. This ensures that you can maintain financial stability without relying solely on market conditions.

Step 2: Is the market rent of $613 (Census ACS) above, at, or below the FMR?

The market rent of $613 is below the FMR of $1,190. This indicates that there is a significant gap between what tenants might pay on their own and what the government will subsidize through Section 8. Therefore, if you are considering the potential for higher rents, the answer is no. However, this gap also means that Section 8 vouchers can be particularly valuable in attracting tenants who otherwise could not afford the market rate.

Step 3: Are 21.4% renters combined with an unknown Days on Market (DOM) indicative of enough demand?

It depends: With 21.4% of residents being renters, there is a moderate level of demand. However, the lack of data on DOM makes it challenging to assess how quickly properties are typically rented out. If the DOM is low, indicating quick turnover, then the answer leans towards yes, there is enough demand. Conversely, if the DOM is high, suggesting slower rental activity, then the answer is no, there may not be sufficient demand to justify investment.

In conclusion, ZIP 79512 offers a clear path to covering debt service through Section 8 subsidies. However, the lower market rent suggests that tenants may need the voucher program to afford housing. The rental demand is moderate, but the uncertainty around DOM requires further investigation before making a final decision.

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.