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 | $740 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $144,160 | 0.75% | D |
| 3BR | $1,470 | $192,295 | 0.76% | D |
| 4BR | $1,800 | $247,600 | 0.73% | D |
U.S. Census Bureau data (2024)
The ZIP code 79849, located in San Elizario, Texas, presents a unique challenge for renters given the local economic conditions. The median income for a household in this area stands at $44,831 according to the latest Census American Community Survey (ACS) data. Meanwhile, the market rate for rent is $919 per month. This places significant financial strain on the average renter, as the monthly income would be approximately $3,736 when spread evenly across the year.
To put this into perspective, a household earning the median income would spend nearly 25% of their monthly income on rent alone, which is a substantial portion. When considering other essential expenses such as food, healthcare, transportation, and utilities, it becomes evident that the cost of living is quite high relative to the income levels. Furthermore, the Fair Market Rent (FMR) set by the government for ZIP 79849 in fiscal year 2024 is $950, slightly higher than the current market rate but still within reach for many households.
With 25.1% of the 14,409 population being renters, there is a notable segment of the community facing these affordability challenges. This suggests that competition among landlords could be fierce, especially for those who offer more affordable rates or additional amenities that make the rental more attractive compared to the market average. The affordability gap indicates that some renters might struggle to find housing that fits within their budget, leading them to seek assistance through housing vouchers.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is clear. Accepting vouchers can provide a steady stream of reliable rental income, albeit at a fixed rate set by the government. While the voucher payment standard of $950 is close to the market rate of $919, it ensures a consistent tenant base, particularly if the market rate continues to rise. For those who prefer flexibility and potentially higher rents, focusing on cash-paying tenants may be more appealing, but they should be prepared for a competitive market and possibly lower occupancy rates if their rental prices exceed what the majority of the local population can afford.
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.