Location: Hudspeth County, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $172,439 | 0.86% | C |
| 3BR | $2,030 | $239,011 | 0.85% | C |
| 4BR | $2,490 | $281,401 | 0.88% | C |
| 5BR | $2,888 | $358,901 | 0.8% | C |
U.S. Census Bureau data (2024)
El Paso’s 79938 ZIP code is a high-growth, largely suburban area characterized by expansive residential development and master-planned communities. It is known as one of the region’s more desirable family-friendly corridors, often drawing residents who seek newer housing stock away from the urban core. A major institutional presence in this area is Fort Bliss, one of the largest military installations in the U.S. Army, which provides a steady economic base and contributes to a consistent demand for rental housing from military personnel and defense contractors.
From a strictly numerical standpoint, investors face a challenging spread in 79938. The HUD Fair Market Rent (FMR) for a 2-bedroom unit stands at $1,540, while the current market rent (ZORI) reaches $1,688, creating a gap of $148 per month. With a median home value of $252,440 and a median 2BR sale price of $170,217, acquisition costs are moderate, though properties sit on the market for a median of 102 days. Because the FMR lags behind market rates, voucher tenants do not cash-flow here at the top end of the market unless landlords negotiate below-market rates or acquire assets at a significant discount to the $170,217 median.
Despite the rent cap, the tenant pool remains robust. The area’s 18.7% renter share is relatively low, indicating a strong ownership culture, but the median household income of $77,272 suggests residents have stable earnings to support rent. This income level, combined with highly-rated public schools in the Socorro Independent School District and accessibility to major retail corridors, supports a tenant profile that values stability and community amenities, which can translate into lower turnover for Section 8 landlords.
The strongest investor angle in 79938 is stability and long-term appreciation rather than immediate aggressive cash flow. The reliable income backdrop provided by Fort Bliss, coupled with higher-than-average household incomes, mitigates vacancy risk even if the HUD payment standard is slightly below market peak. Investors should focus on acquiring properties near the $170,217 median price point to ensure the numbers align, leveraging the area’s family-oriented infrastructure to maintain consistent occupancy.
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.