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 | $960 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $220,715 | 0.63% | D |
| 3BR | $1,880 | $285,289 | 0.66% | D |
| 4BR | $2,310 | $408,097 | 0.57% | F |
| 5BR | $2,680 | $588,559 | 0.46% | F |
U.S. Census Bureau data (2024)
El Paso’s 79912 ZIP code represents the city’s upscale West Side, a region defined by master-planned communities and proximity to the Franklin Mountains. Known for its suburban character and expansive desert views, this area attracts families and professionals seeking a retreat from the urban core. A major driver of the local economy and housing stability is the University of Texas at El Paso (UTEP), which lies just east of this district and provides a steady stream of faculty and staff looking for quality rentals nearby.
From a valuation perspective, the HUD SAFMR for a 2-bedroom unit in 79912 sits at $1,340, which is remarkably aligned with the current market rent of $1,339. This zero-dollar gap suggests that voucher payments will match market rates almost exactly. Investors considering acquisition should note the median home value is $315,701, while the median 2BR sale price is $215,003. Properties are moving at a moderate pace, with a median of 55 days on market. There is no premium here for accepting vouchers, but neither is there a discount.
The tenant pool is substantial, bolstered by a 47.0% renter share and a median household income of $72,943. This income level is well above the typical threshold for voucher eligibility, indicating a market where families can afford housing costs but may still utilize Housing Choice Vouchers for stability. Demand is further supported by access to highly-rated schools within the El Paso Independent School District and the area's major retail corridors along Sunland Park Drive, which serve as key amenities for long-term residents.
The strongest investor angle in 79912 is stability rather than aggressive cash-flow. Because the 2BR SAFMR ($1,340) and market rent ($1,339) are virtually identical, investors can expect to receive fair market value without the vacancy risk associated with non-subsidized units. With the local population nearing 79,000 and significant institutional employers like UTEP anchoring the economy, this West Side enclave offers a defensive play for portfolio preservation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.