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 | $790 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $237,691 | 0.48% | F |
| 3BR | $1,550 | $285,714 | 0.54% | F |
| 4BR | $1,910 | $396,922 | 0.48% | F |
| 5BR | $2,216 | $588,121 | 0.38% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1200 for ZIP 79932 in fiscal year 2024 can sufficiently cover the mortgage on a $321,204 home. According to the data, the FMR for a two-bedroom unit in ZIP 79932 is $1210, which is slightly above the $1200 figure mentioned. However, it's important to note that FMRs do not directly correlate with mortgage payments; they are benchmarks for determining the maximum rent assistance a tenant can receive. To accurately assess if this FMR will cover a mortgage, one needs to consider the specific interest rate and loan terms. Without these details, we cannot provide a definitive answer.
The same investor could also be concerned about the level of renter demand, given that only 28.9% of households are renters. This percentage indicates a relatively low demand for rental properties compared to owner-occupied homes. However, the demand for Section 8 rentals is not solely dependent on the overall rental rate but also on the availability of affordable housing and the number of eligible tenants. ZIP 79932 has a significant population that may benefit from such assistance, suggesting a potential market for Section 8 properties despite the lower overall rental rate.
Another objection could be whether the Housing Choice Vouchers will keep pace with the market rents, currently at $1,783. The FMR for a three-bedroom unit in ZIP 79932 is $1,660, which is slightly below the market rent. While this gap exists, it's worth noting that the voucher amount can vary based on the specific circumstances of the tenant and the local housing authority's policies. The HUD FMR is a guideline, and local authorities often adjust payment standards to reflect the actual cost of renting in their area. Therefore, while the FMR may not fully cover the market rent, the local payment standard could potentially bridge this gap.
In summary, while the data raises questions about the ability of FMRs to cover mortgages and keep up with market rents, it also suggests a viable market for Section 8 properties in ZIP 79932, especially considering the specific local adjustments made by housing authorities. The low renter demand percentage should be weighed against the potential benefits of targeting eligible tenants who rely on voucher assistance.
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.