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 | $750 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $127,862 | 0.72% | D |
| 2BR | $1,080 | $169,032 | 0.64% | D |
| 3BR | $1,470 | $223,533 | 0.66% | D |
| 4BR | $1,810 | $318,143 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 79836 (Clint, TX) provides a clear picture of potential rental income versus median home values. With an annualized Fair Market Rent (FMR) for a 2-bedroom property at $980 per month for fiscal year 2024, the total annual income would be $11,760. In contrast, the market rent for a similar property is $1,104 per month, equating to an annual income of $13,248.
To derive the gross yield, we divide the annual rental income by the median home value of $217,790. For the FMR scenario, the gross yield is calculated as follows:
$11,760 / $217,790 = 0.054 or 5.4%
For the market rent scenario, the gross yield is:
$13,248 / $217,790 = 0.061 or 6.1%
The gross yields indicate that the market rent scenario offers a slightly higher return on investment compared to the FMR scenario. However, the reality of the situation is more nuanced when considering the 18.1% renter density in Clint, TX. This low renter density suggests a smaller pool of potential tenants, which could impact the stability of rental income over time.
The N/A-day Days on Market (DOM) data implies either a very competitive or a very slow rental market, depending on the context. Given the lower renter density, it's likely that the market is slower, making it harder to fill vacancies quickly and maintain steady cash flow.
In conclusion, while the market rent scenario provides a higher gross yield at 6.1%, the FMR scenario at 5.4% might be more realistic given the local conditions. Landlords and small-portfolio investors should consider these factors when evaluating the potential returns and risks associated with Section 8 properties in ZIP 79836.
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.