Location: Midland, TX | Metro: Midland, TX HUD Metro FMR Area
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 | $1,290 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $180,849 | 0.93% | C |
| 3BR | $2,080 | $270,045 | 0.77% | D |
| 4BR | $2,410 | $346,082 | 0.7% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 79701, located in Midland, TX, include significant tenant turnover. The market rent in this area is $1,709, while the Fair Market Rent (FMR) for FY 2024 is set at $1,390. This discrepancy can lead to higher turnover rates as tenants might seek properties that better match their budget. Additionally, the vacancy exposure is a concern due to the lack of data on the number of days on market (DOM), which makes it difficult to predict how long a property might remain vacant between tenants.
The deferred maintenance exposure is another critical risk factor. With a typical home value of $217,358 and a median household income of $57,346, the financial strain on residents could result in a higher need for landlords to manage maintenance costs. Tenants may have limited resources to contribute to repairs, leaving the burden primarily on the landlord.
However, these risks must be weighed against the high renter share in the area, which stands at 33.0%. High renter density typically translates into greater demand for housing vouchers, such as Section 8. This increased demand can provide a steady stream of qualified tenants who are committed to maintaining their rental obligations, thus mitigating some of the turnover and vacancy risks.
In conclusion, despite the potential challenges, the high renter share suggests that there is a strong market for Section 8 tenants. Therefore, the overall risk for a first-time Section 8 landlord in ZIP code 79701 is moderate.
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.