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 | $143,357 | 0.75% | D |
| 3BR | $1,470 | $171,723 | 0.86% | C |
| 4BR | $1,800 | $193,518 | 0.93% | C |
U.S. Census Bureau data (2024)
The ZIP code 79905 in El Paso, TX, is characterized by a substantial renter population. With 51.7% of the residents being renters, this area qualifies as a renter-heavy ZIP, indicative of a strong demand for rental properties. Given the total population of 22,594, it's evident that there is a significant pool of potential tenants who might rely on Section 8 vouchers.
The median household income in this ZIP is $25,721, which is notably lower than the Fair Market Rent (FMR) for a one-bedroom apartment, set at $910 per month for FY 2024. The current market rent stands at $674, representing approximately 30.1% of the median household income. This means that typical rents consume a considerable portion of the local residents' earnings, making them highly likely to seek assistance through housing vouchers.
To put this into perspective, the $674 market rent is still below the FMR benchmark, suggesting that landlords in this area could potentially adjust their rents upwards without exceeding the affordability threshold set by HUD for voucher recipients. However, given the economic conditions, maintaining a competitive rate close to the market average would be advisable to attract tenants.
A landlord operating in ZIP 79905 can expect a tenant profile that heavily relies on financial assistance for housing. Tenants will likely have low to moderate incomes and will require Section 8 vouchers to cover a significant portion of their rent payments. It's important to note that due to the high percentage of renters and relatively low median income, competition for affordable housing units can be intense.
In conclusion, ZIP 79905 is a prime location for landlords looking to engage with a Section 8 tenant pool. The area's characteristics suggest a robust demand for subsidized rentals, with typical market rents consuming a substantial portion of local incomes. Landlords should prepare for a tenant base that includes many voucher holders, and they should consider the economic realities when setting their rent rates.
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.