Location: Odessa, TX | Metro: Odessa, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 79741 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1600 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions here. Unfortunately, the local market rent data for ZIP 79741 is currently unavailable, but understanding the SAFMR can still provide valuable insights into the financial implications for landlords.
When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically around 30% of their income. For instance, if a tenant's monthly income is $1500, they would pay approximately $450 towards the rent. The remainder of the rent, up to the SAFMR, is covered by the housing authority. In the case of a $1600 SAFMR, the landlord would receive the difference between the tenant's contribution and the total rent, which in this example would be $1150.
Utility allowances are also part of the calculation. These allowances vary but generally cover a significant portion of the tenant's utility expenses. If the utility allowance is $200 per month, it would be added to the base rent payment. Therefore, the landlord would receive $1350 ($1150 in rent plus $200 in utilities) for a two-bedroom unit priced at $1600 under the SAFMR scheme.
To summarize the typical reimbursement scenario for a two-bedroom apartment in ZIP 79741, assuming the market rent aligns closely with the SAFMR, landlords will receive the full SAFMR amount of $1600. However, if the market rent exceeds the SAFMR, there will be a reimbursement gap. Conversely, if the market rent is below the SAFMR, landlords might see a surplus. Given the SAFMR is $1600 and local market rent data is not available, landlords should prepare for either a surplus or a need to adjust their rents to match the SAFMR to avoid any gaps in reimbursement.
In conclusion, landlords in ZIP 79741 participating in the Section 8 program can expect a stable source of income, with payments directly tied to the SAFMR of $1600 for a two-bedroom unit. This ensures predictability and reduces the risk of non-payment, making it a reliable option for those willing to navigate the program's requirements.
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.