Location: El Paso, TX | Metro: El Paso, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
U.S. Census Bureau data (2024)
ZIP 79906 in El Paso, TX, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1730, which is significantly higher than the market rent of $1488. This creates a positive spread of $242 per unit, ensuring that landlords receive a higher rental income compared to the local market rate.
The median home value is not applicable here since we are focusing on rental properties. However, the median income of $56,044 provides insight into the financial stability of the tenants in this area. Given that the majority of the population consists of renters (100.0% renter share), there is a strong demand for affordable housing, making Section 8 vouchers an attractive option for many residents.
This ZIP code offers consistent cash flow due to the guaranteed income from the Section 8 program, which covers the difference between the tenant's contribution and the FMR. Landlords can rely on this steady stream of income without worrying about market fluctuations or vacancy rates. The higher FMR also means that the government subsidy will be sufficient to cover maintenance and operational costs, leaving landlords with a reliable profit margin.
In conclusion, ZIP 79906 should be considered a cash-flow anchor for Section 8 portfolios. Its high FMR relative to market rent ensures a stable and predictable income source, while the strong renter base supports robust demand for subsidized housing units.
Data Sources: FMR data from HUD (2027). 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.