Section 8 Fair Market Rent (FMR) for ZIP 79733 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

When considering whether to invest in ZIP code 79733 for Section 8 properties, follow this decision tree:

• Does the Fair Market Rent (FMR) of $1,170 (for the metro area in fiscal year 2026) cover the debt service on a property?
  • If the FMR does not cover the debt service, the answer is No. Do not proceed with purchasing in this area.
  • If the FMR does cover the debt service, move to the next question.
• Is the market rent of $524 (based on Census ACS data) above, at, or below the FMR?
  • If the market rent is below the FMR, the answer is It Depends. This suggests that properties may be undervalued, but there is also less profit margin per unit.
  • If the market rent is at or above the FMR, proceed to the next question.
• Are 64.4% of residents renters, and do the days on market (DOM) indicate sufficient demand?
  • If the percentage of renters is high and the DOM is low, the answer is Yes. There is strong demand for rental properties, which is beneficial for Section 8 investments.
  • If the percentage of renters is high but the DOM is not specified, the answer is It Depends. High renter rates suggest demand, but without knowing the DOM, you cannot fully assess the competition and vacancy risks.
  • If the percentage of renters is low or the DOM is high, the answer is No. The demand for rental properties is insufficient, making it a risky investment for Section 8.

The Fair Market Rent figure of $1,170 is crucial for covering the operational costs and debt service of any property. Given that the market rent stands at $524, which is significantly below the FMR, it indicates that the local market might not support higher rents, even if government subsidies are involved. This could mean lower profitability or difficulty in finding tenants willing to pay the higher Section 8 rates.

With 64.4% of the population being renters, the demand appears robust. However, without the specific DOM data, it's impossible to determine how quickly properties are leased and the level of competition in the rental market. A low DOM would suggest strong demand, whereas a high DOM would imply the opposite.

In summary, if the FMR of $1,170 can cover your debt service and you're prepared for a market where rents are below this figure, and if the high percentage of renters translates into quick leasing periods, then investing in ZIP 79733 for Section 8 properties could be viable. Otherwise, consider other areas with more favorable conditions.

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.