Location: Howard County, TX | Metro: Martin County, 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 | $1,300 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $106,091 | 1.51% | A+ |
| 3BR | $2,000 | $195,779 | 1.02% | B |
| 4BR | $2,460 | $272,062 | 0.9% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 79720, located in Big Spring, TX, Howard County, does not work favorably for landlords. The Fair Market Rent (FMR) for the area, set at $920 for fiscal year 2024, falls significantly below the market rent indicated by Zillow's Observed Rental Index (ZORI), which stands at $1,298. This discrepancy suggests that landlords may struggle to cover costs and maintain profitability if they align their rental rates with the FMR.
Acquisition in this ZIP code is relatively affordable. The median home value is listed at $140,875, making it a viable option for small-portfolio investors looking to enter the market without a substantial initial investment. However, the average days on market (DOM) is 115 days, indicating a moderate level of competition or difficulty in selling homes. Additionally, only 0.2% of homes are listed with a price cut, suggesting that while prices are stable, the market may be slower-moving compared to more dynamic areas.
Tenant demand in ZIP 79720 is present but not overwhelming. With a total population of 29,936, the renter share is 30.8%, equating to approximately 9,182 potential renters. While this represents a significant portion of the local market, it also means that nearly two-thirds of the residents are homeowners, which could limit the pool of tenants available for rental properties.
In summary, ZIP 79720 presents a challenging environment for landlords due to the unfavorable rent math where FMR is well below market rates. Acquisition remains affordable with a low median home value, though the market moves at a moderate pace. Tenant demand is steady but limited by a higher rate of homeownership. Investors should carefully consider these factors before entering the market in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.