Location: El Paso, TX | Metro: El Paso, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
The Section 8 market analysis for ZIP code 79941 in El Paso County, Texas, reveals key insights for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for this area is set at $1150 for fiscal year 2024, which is the benchmark for rental rates under the Section 8 program.
Unfortunately, the current market rent data for ZIP 79941 is unavailable, making it challenging to directly compare the HUD FMR against typical rental rates. However, based on historical trends and the fixed nature of the FMR, it's likely that voucher tenants will only cash flow in premium units or with some subsidies from landlords. This conclusion is drawn from the fact that HUD FMRs often lag behind actual market rents, especially in urban areas with higher demand.
The median home value for ZIP 79941 is also currently unreported, but when available, it can be used to calculate the rent-to-price ratio, an important metric for understanding the relative affordability of renting versus buying. This ratio helps investors gauge how much they can charge in rent compared to the property values in the area, providing a clearer picture of potential returns.
Additionally, the Days on Market (DOM) and price-cut share percentages are not reported for this ZIP code. These metrics are crucial for understanding the dynamics between renting and buying, as they indicate how quickly properties sell and at what discount. High DOM and significant price cuts suggest a buyer's market where rental income could provide more stable returns.
The strongest angle for investors in ZIP 79941 appears to be stability. Given the consistent demand for affordable housing and the fixed nature of HUD FMRs, investors can rely on steady rental income from voucher tenants, even if cash flow is modest. Stability is particularly valuable in a volatile market, ensuring predictable cash flows and minimizing risks associated with fluctuating rental rates and property values.
Data Sources: FMR data from HUD (2027).
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.