Location: Crane County, TX | Metro: Midland, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,290 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 79766 is centered around the disparity between the Fair Market Rent (FMR) set at $1320 for fiscal year 2024 and the actual market rent of $1,158, according to the latest Census ACS data. This represents a gap of $162, or approximately 14%, where the FMR exceeds the market rent.
This scenario makes ZIP 79766 an attractive yield play for landlords and small-portfolio investors. The higher FMR compared to the market rent means that landlords can potentially earn more per unit when renting to voucher tenants. For every unit leased under the Section 8 program, landlords receive a subsidy that covers the difference between the market rent and the tenant's portion, which is typically 30% of their income. In this case, the subsidy would cover the additional $162 above the market rate, ensuring a higher net income for the landlord.
The context of 79766 further supports this thesis. With only 17.1% of residents being renters, the demand for rental properties is relatively low, making it easier to fill units with voucher tenants. Additionally, the median home value stands at $281,597, indicating a moderate to high property value that can support slightly elevated rents without pricing out the local population. The median income of $74,407 suggests that most residents can afford their housing costs, but the lower percentage of renters indicates a smaller pool of potential non-voucher tenants.
In summary, the $162 premium on FMR over market rent in ZIP 79766, combined with the low rental occupancy rate and moderate income levels, creates a compelling opportunity for landlords to increase their yields by participating in the Section 8 program.
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.