Location: Midland, TX | Metro: Midland, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
The HUD Fair Market Rent (FMR) for ZIP code 79704 in Midland, Texas, for fiscal year 2024 is set at $1610. This figure represents the maximum amount that landlords can charge for a unit under the Section 8 housing choice voucher program. However, without current market rent data, it's challenging to make a direct comparison between the HUD FMR and what tenants might pay in the open market.
Based on the HUD FMR alone, voucher tenants in ZIP 79704 will likely cashflow at the FMR rate. This means that landlords should be able to cover their costs and maintain a positive cash flow when renting properties at the HUD-set rate. The lack of specific market rent data prevents a more detailed analysis, but it's reasonable to assume that the market rents in this area are competitive and possibly higher than the FMR, given the economic conditions of Midland, which is known for its oil industry.
The median home value in ZIP 79704 is not available, making it difficult to calculate an exact rent-to-price ratio. However, the absence of this information does not necessarily hinder investment decisions. Landlords and small-portfolio investors should focus on the stability provided by the Section 8 program rather than relying solely on appreciation or high cash flow margins.
The days on market (DOM) and price cut share percentages are also unavailable. These metrics would typically help investors understand the dynamics between renting and buying, but in the context of Section 8 investments, they are less critical. The primary concern for Section 8 investors is ensuring that the rent charged aligns with the HUD FMR, which currently stands at $1610, and that they can manage the property effectively to maintain compliance with the program.
The strongest angle for investors in ZIP 79704 is stability. With a reliable HUD FMR and the backing of the federal government to ensure timely payments, landlords can expect consistent income without the volatility often associated with market-rate rentals. This makes Section 8 properties particularly attractive for those seeking long-term, low-risk investments in the area.
Data Sources: FMR data from HUD (2027).
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.