Location: Pecos County, TX | Metro: Crockett County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 79744 is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,210, whereas the current market rent, according to Census ACS data, is only $374. This creates a gap of $836, which represents a staggering 223.5% difference.
In this scenario, where the FMR is notably higher than the market rent, the potential for landlords and small-portfolio investors lies in the yield play offered by voucher tenants. The government's willingness to pay up to $1,210 per month for rental units under the Section 8 program can be a substantial boon to landlords, especially given that the typical market rent is much lower. This means that landlords can secure rental incomes far above the local average, making it an attractive proposition.
The analysis must also consider the broader economic context of ZIP 79744. With 33.9% of residents being renters and a median household income of $42,039, there is a notable demand for affordable housing. The absence of data on median home values suggests a predominantly rental market, further reinforcing the importance of rental properties in this area.
The high FMR relative to the market rent indicates that voucher tenants can afford to pay significantly more than what most landlords might charge to attract non-voucher tenants. This scenario presents an opportunity for landlords to increase their rental yields without having to compete with the lower rents typical in the open market. However, it is crucial to note that landlords must adhere to the eligibility requirements and regulations of the Section 8 program to benefit from these higher rents.
To summarize, the Section 8 program in ZIP 79744 offers a unique opportunity for landlords to capitalize on the gap between the FMR and market rent. By accepting voucher tenants, landlords can achieve higher rental yields, which is particularly advantageous in a region where the median income is $42,039 and a third of the population are renters.
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.