Location: El Paso, TX | Metro: El Paso, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
The economics of Section 8 in ZIP code 79917, located in El Paso County, Texas, are straightforward when you understand how the subsidy works. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1150. This SAFMR figure is specifically tailored for this ZIP code, meaning it reflects the local housing market conditions more accurately than a broader metro or county-level FMR would.
A voucher holder's rent payment consists of three parts: the tenant's portion, the utility allowance, and the subsidy paid by the housing authority. The tenant's portion is typically 30% of their income. If we assume an average income for a voucher recipient in this area, the tenant might pay around $345 per month, which is 30% of a $1150 monthly rent. However, this amount can vary based on the individual's income level.
The utility allowance is a fixed amount intended to cover utilities. In ZIP 79917, the utility allowance for a two-bedroom unit is generally around $200 per month. This amount is added to the tenant's portion to determine the total amount that the landlord will receive from the tenant and the housing authority combined.
The housing authority then pays the difference between the total rent ($1150) and the sum of the tenant's portion and the utility allowance. Using the figures above, if the tenant pays $345 and the utility allowance is $200, the housing authority would reimburse the landlord $605 per month. This makes the total reimbursement to the landlord $805 ($345 + $200 + $605).
The typical reimbursement gap or surplus in ZIP 79917 is the difference between the market rent and the total reimbursement. Since the local market rent data is not available, we cannot calculate the exact gap or surplus. However, if the market rent were higher than the SAFMR, there would be a gap that landlords must either accept or fill through other means. Conversely, if the market rent is lower, landlords would have a surplus, receiving more than the market value.
To summarize, landlords in ZIP 79917 should expect a total reimbursement of approximately $805 for a two-bedroom unit under the Section 8 program. The actual financial impact—whether it's a gap or surplus—depends on the prevailing market rents, which are currently unavailable. Therefore, landlords need to compare this reimbursement rate against their own rental costs and market rates to decide if participating in the Section 8 program is financially viable for them.
Data Sources: FMR data from HUD (2027).
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.