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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $137,454 | 0.96% | C |
| 3BR | $1,710 | $264,961 | 0.65% | D |
| 4BR | $2,030 | $390,737 | 0.52% | F |
| 5BR | $2,355 | $592,706 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 79602, located in Abilene, TX, is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1130, while the Zillow Rent Index (ZORI) indicates a market rent of $2156. This creates a gap of $1026, which represents a 47.6% difference between what the government considers fair and the current market conditions.
In Abilene, where 24.3% of residents are renters, landlords must carefully consider the implications of accepting Section 8 tenants. The median home value in the area is $259,238, and the median household income is $89,551, indicating that many local residents might find it challenging to afford market rents without assistance.
Given that the FMR is significantly lower than the market rent, landlords who accept Section 8 tenants are effectively renting their properties below the open-market rate. This decision comes with several costs. Firstly, the rental income will be less than what could potentially be earned from a market-rate tenant, reducing the overall yield. Secondly, landlords must adhere to HUD regulations, which can be stringent and require additional time and resources to comply with. Lastly, the process of getting paid through the voucher program can sometimes be slower and more cumbersome compared to receiving rent directly from a market-rate tenant.
To summarize, the gap of $1026 or 47.6% between the FMR and market rent highlights the trade-offs involved in accepting Section 8 tenants. While it provides an opportunity to support those in need, it also means accepting a lower rental income and navigating the complexities of the voucher system.
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.