Location: El Paso, TX | Metro: El Paso, TX HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 79920 in El Paso, Texas, reveals several critical points that potential Section 8 landlords should consider before entering this market. Firstly, the issue of tenant turnover must be addressed. With a Fair Market Rent (FMR) set at $1030 for FY 2024, there is uncertainty regarding how this aligns with the local market rent, which is currently unavailable. This gap can lead to higher turnover rates if tenants find better rental deals outside the program.
Vacancy exposure is another concern, especially since the average days on market (DOM) for rentals in this area is also unspecified. A longer DOM indicates higher vacancy risks, which can significantly impact cash flow. Landlords need to be prepared for potential periods where properties remain unoccupied, leading to lost rental income.
The deferred-maintenance exposure is also notable. Given the lack of specific data on typical home values and median incomes, it's challenging to predict the financial health of tenants and their ability to cover maintenance costs. However, without this information, landlords should assume that deferred maintenance could be a recurring issue, requiring additional capital to keep properties in good condition.
Despite these risks, the high density of renters in ZIP 79920 presents an opportunity. The exact percentage of the renter share is not available, but a high renter population generally correlates with increased demand for housing vouchers. This demand can stabilize the rental market and provide a steady stream of Section 8 tenants, mitigating some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 79920.
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.