Location: Stonewall County, TX | Metro: Stonewall County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 79540 presents a challenging scenario due to limited data availability. The Federal Market Rent (FMR) for a two-bedroom apartment is set at $990 per month for fiscal year 2026, based on metro area standards. However, the median home value and market rent figures are currently unavailable, complicating a direct comparison.
In the absence of market rent data, we can only use the FMR to calculate an implied gross yield. Given that the median home value is also not available, let's assume a median home value of $200,000 for illustrative purposes, although this figure should be confirmed with local real estate listings or valuation services.
Using the $990 FMR, the annualized rent would be $11,880. With a $200,000 property value, this translates to an implied gross yield of 5.94%. This calculation assumes a fully rented property throughout the year without any vacancy periods, which is not typically the case in real estate investing.
Without the market rent figure, it is impossible to provide a second gross yield scenario. However, if the market rent were higher than the FMR, the gross yield would naturally increase. For example, if the market rent were $1,200 per month, the annualized rent would be $14,400, leading to a gross yield of 7.20% under the same property value assumption.
The lack of market rent data and the non-existent renter density percentage suggest that Section 8 participants are likely minimal in ZIP 79540. This makes the FMR-based gross yield less realistic for potential investors looking to gauge the overall rental market health. The Days on Market (DOM) being listed as N/A further indicates that there might be insufficient transactional data to draw meaningful conclusions about the speed at which properties are rented out.
To conclude, while the $990 FMR provides an implied gross yield of 5.94%, this figure alone does not offer a comprehensive view of the investment landscape in ZIP 79540. Investors should seek additional local market insights to complement this analysis before making any decisions.
Data Sources: FMR data from HUD (2027). 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.