Section 8 Fair Market Rent (FMR) for ZIP 79927 - 2027

Investment Score for ZIP 79927

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$960
2 Bedrooms	$1,130
3 Bedrooms	$1,540
4 Bedrooms	$1,890
5 Bedrooms	$2,192
6 Bedrooms	$2,455
7 Bedrooms	$2,651
8 Bedrooms	$2,784

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,130	$155,934	0.72%	D
3BR	$1,540	$208,091	0.74%	D
4BR	$1,890	$242,663	0.78%	D
5BR	$2,192	$285,539	0.77%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 79927 (Socorro, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 79927, Socorro, TX, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1160, which represents 25.9% of the median household income of $53,652. However, the Zillow median price for a two-bedroom home in this area is $154,053, indicating a significant disparity between the cost of housing and the FMR. The price-to-FMR ratio for a two-bedroom unit is 11.1x, suggesting that actual rental prices are much higher than the FMR. This means that tenants with Section 8 vouchers will face significant constraints in finding suitable housing within their budget. #### Affordability & Renter Profile In ZIP 79927, approximately 19.2% of the population are renters, indicating a relatively small rental market compared to homeownership. With a median household income of $53,652, the rental market appears to be quite tight, especially for those relying on Section 8 vouchers. Given that the FMR for a two-bedroom unit is only $1160, many potential renters may struggle to find affordable options, particularly if they need larger units. The occupancy rate of 94.9% suggests that there is little excess capacity in the rental market, making it challenging for new renters to enter the market without competing for limited available units. #### Investor Angle From an investor perspective, the ZIP code 79927 offers mixed opportunities. While the FMR for a two-bedroom unit is $1160, the actual rental prices are significantly higher, with a price-to-FMR ratio of 11.1x. This implies that properties rented out at the FMR level would likely generate negative cash flow, given the high actual rental prices. However, investors who can secure higher rents may still find the market attractive. The tight rental market and high occupancy rate indicate strong demand, but the affordability gap suggests that investors should focus on properties that can be rented at or slightly above the FMR to attract Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $990, which is still below the actual rental prices but closer to what Section 8 tenants can afford. This could provide a balance between attracting Section 8 tenants and generating positive cash flow. 2. **Consider Location-Specific Pricing**: The high price-to-FMR ratio might be influenced by location-specific factors. Investors should analyze specific neighborhoods within ZIP 79927 to identify areas where rental prices are closer to the FMR. This could involve looking at less desirable locations or areas with lower demand for larger units. 3. **Develop Long-Term Strategies**: Given the tight rental market and high occupancy rates, developing long-term strategies to improve property values and reduce vacancy rates could be beneficial. This might include investing in property renovations or offering amenities that appeal to both Section 8 tenants and other renters. #### Bottom Line For Section 8-focused investors, the ZIP code 79927 presents a challenging market due to the high price-to-FMR ratio and tight rental conditions. The recommendation is to **Skip** this ZIP code unless investors can find specific niches or areas where rental prices align more closely with the FMR. Alternatively, investors might consider a broader strategy that includes non-Section 8 tenants to offset the financial constraints imposed by the voucher program.

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.