Location: Odessa, TX | Metro: Odessa, TX MSA
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 | $1,130 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,750 | $248,840 | 0.7% | D |
| 4BR | $2,010 | $306,403 | 0.66% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 79761, located in Ector County, part of the Odessa, TX MSA, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1,410, which is higher than the market rent indicated by ZORI (Zillow Observed Rental Index) at $1,322. This means that voucher tenants will typically cashflow at the FMR level, providing a positive financial outcome for landlords and small-portfolio investors.
To understand the economic landscape better, we can look at the median home value in the area, which stands at $209,249. Using this figure, we derive a rent-to-price ratio of approximately 0.67%, indicating that rental income represents a significant portion of the property's value. This ratio suggests that properties in this ZIP code are relatively affordable for renters and offer a good balance between rental yield and property value.
The dynamics of the rental versus buying market are also worth noting. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it appears that the housing market is stable and not experiencing significant fluctuations that would affect the rental market. However, the lack of DOM data might indicate a need for further investigation into local market conditions.
The strongest angle for investors in ZIP 79761 is likely to be cashflow. Given the discrepancy between the HUD FMR and the actual market rent, landlords can expect a steady stream of income from voucher tenants without the risk of negative cashflow. This makes the area particularly attractive for those looking to generate reliable rental income.
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.