Location: El Paso, TX | Metro: El Paso, TX HUD Metro FMR Area
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 | $810 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $223,193 | 0.71% | D |
| 4BR | $1,940 | $258,052 | 0.75% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP 79821 is poised for stability and potential growth over the next 12-24 months, given the current median home value of $220,781. This figure suggests that homes in the area are reasonably priced, making them accessible to a broad range of buyers. The fact that only 0.1% of listings have reduced their prices indicates strong seller pricing power, as most homeowners are maintaining their asking prices without significant concessions. While the median days on market (DOM) is not available, the low percentage of price reductions suggests a brisk pace of sales, which further supports the idea of a healthy seller's market.
On the rental side, the Federal Market Rent (FMR) for ZIP 79821 is projected at $1,110 for fiscal year 2024, compared to the current market rate of $1,053 based on Census ACS data. This positive gap between FMR and the market rate signals that there is room for rental price increases, aligning with the trend towards higher rents. Landlords and small-portfolio investors can expect rental income to rise, supporting the overall financial health of their properties.
For long-term investors, the setup in ZIP 79821 implies a realistic appreciation thesis. With strong seller pricing power and an upward trend in rental rates, it is reasonable to anticipate that property values will appreciate over time. However, the pace of appreciation may be moderate rather than rapid, given the current market conditions. Investors should focus on the steady growth of rental income and gradual property value appreciation as key drivers of investment returns.
The combination of a stable median home value, minimal price reductions, and positive rental dynamics points to a resilient local real estate market. Long-term investors should find this environment conducive to building a sustainable portfolio with predictable cash flows and modest capital gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.