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 | $1,040 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,030 | $238,066 | 0.85% | C |
| 4BR | $2,490 | $278,858 | 0.89% | C |
| 5BR | $2,888 | $344,492 | 0.84% | C |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 79934 reveals several potential issues that landlords should be aware of when considering Section 8 participation. Tenant turnover is a significant concern, with the market rent at $1,795 being notably higher than the Fair Market Rent (FMR) of $1,520 for FY 2024. This discrepancy can lead to frequent changes in occupancy, increasing administrative burdens and operational costs.
Vacancy exposure is another critical risk factor. The average Days on Market (DOM) for properties in this area is 50 days, indicating a moderate period of time before a property becomes occupied. This extended vacancy period can result in lost rental income and increased holding costs, such as utilities and maintenance.
Deferred maintenance poses an additional risk due to the relatively low median income of $77,754 compared to the typical home value of $249,638. Landlords may face challenges in keeping up with necessary repairs and renovations, which can be costly. The financial strain of maintaining a property's condition while receiving capped rental payments can be substantial.
However, these risks must be weighed against the high renter share of 29.4%, which suggests a robust demand for rental housing in ZIP 79934. High renter density typically translates into a greater number of tenants seeking Section 8 vouchers, potentially reducing vacancy rates and ensuring a steady stream of income.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 79934 is moderate. While there are significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a compensating factor that can mitigate some of these risks.
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.