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 |
|---|---|---|---|---|
| 1BR | $920 | $145,660 | 0.63% | D |
| 2BR | $1,080 | $196,743 | 0.55% | F |
| 3BR | $1,470 | $299,960 | 0.49% | F |
| 4BR | $1,800 | $442,812 | 0.41% | F |
| 5BR | $2,088 | $532,636 | 0.39% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 79902, located in El Paso, TX, include higher tenant turnover due to the discrepancy between market rent and the Fair Market Rent (FMR) set by the government. The market rent stands at $1,172, while the FY 2024 FMR is $1,030. This gap can lead to tenants seeking higher-paying rentals, increasing the likelihood of frequent turnover.
Vacancy exposure is another concern, although the Days on Market (DOM) data is currently unavailable. Given the lower FMR compared to market rent, it might be challenging to fill vacancies promptly, especially if there is a delay in processing new tenants through the Section 8 program.
A significant risk factor is deferred maintenance, particularly when considering the typical home value of $285,149 and the median income of $50,873. The median income suggests that homeowners may struggle to afford necessary repairs and maintenance, which can affect property quality and tenant satisfaction over time.
However, these risks are offset by the high renter share in the area, which is 58.0%. High renter density typically translates into greater demand for rental properties, including those accepting Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 79902 is moderate.
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.