Location: Reeves County, TX | Metro: Reeves County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 79780 reveals a challenging investment landscape due to limited data points. To begin with, the annualized Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $1,080 per month. This translates to an annual rental income of $12,960 for a 2BR unit. However, the median home value in ZIP 79780 is currently unavailable, which makes it difficult to estimate the property value necessary for calculating the cap rate.
In the absence of median home values, we can still provide a general overview based on the available FMR data. If we assume that the median home value is significantly higher than the annual rental income, the implied gross yield would be quite low. For example, if the median home value were hypothetically $250,000, the gross yield would be approximately 5.2%. This is calculated by dividing the annual rental income ($12,960) by the property value ($250,000).
However, the lack of market rent data and the fact that the renter density is reported at 0.0% suggest that there is little to no demand for Section 8 housing in this area. Additionally, the Days on Market (DOM) figure being N/A implies that there is insufficient data to gauge how quickly properties are typically sold or rented in ZIP 79780. Given these factors, it's unlikely that the hypothetical gross yield of 5.2% is reflective of the actual situation.
A more realistic scenario would involve considering the local rental market conditions. Since the market rent is not available, we cannot provide a direct comparison to the FMR-based gross yield. However, the 0.0% renter density indicates that the majority of residents in ZIP 79780 are likely homeowners, which further suggests that rental demand, including for Section 8, is minimal. This means that achieving the FMR-based rental income could be difficult, potentially leading to lower actual yields.
In conclusion, while the FMR data provides a benchmark for potential rental income, the lack of median home values and market rent data, coupled with the low renter density, makes it challenging to accurately assess the Section 8 cap rate for ZIP 79780. Investors should proceed with caution and seek additional local insights before making any decisions.
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.