Location: Ward County, TX | Metro: Ward County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 79777 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,110 for the fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay to landlords for renting out a unit in this specific ZIP code. However, it's important to note that the local market rent for 79777 is currently unavailable, which can make it challenging to compare the SAFMR to what tenants might otherwise pay.
A voucher payment consists of two parts: the tenant's contribution and the subsidy from the government. Tenants are required to contribute 30% of their adjusted income towards rent. For a two-bedroom apartment in ZIP 79777, if the tenant's monthly adjusted income is $1,000, they would contribute $300 toward the rent. The remaining balance, up to the SAFMR of $1,110, would be covered by the government. In this example, the government would pay $810 ($1,110 - $300).
Utility allowances also play a role in the total compensation received by landlords. These allowances vary but typically cover a portion of the tenant's electricity, gas, water, and sewer costs. If a utility allowance of $150 is added to the government's subsidy, the total reimbursement to the landlord would be $960 ($810 + $150).
Given the SAFMR of $1,110 and the typical contributions from tenants and utility allowances, landlords should expect to receive a reimbursement that falls short of the SAFMR. To illustrate, if the total reimbursement including utilities is $960, the gap between this amount and the SAFMR would be $150 per month. This means landlords could lose $150 on each two-bedroom rental unit subsidized under the Section 8 program in ZIP 79777.
In summary, while the SAFMR provides a benchmark for rental rates, the actual reimbursement to landlords is lower due to the tenant's contribution and utility allowances. Landlords must carefully consider these factors when deciding whether to participate in the Section 8 program in ZIP 79777. The reimbursement gap for a two-bedroom apartment in this ZIP code is likely to result in a loss of $150 per month, unless the local market rent is significantly below the SAFMR, in which case there might be a surplus.
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.