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 in ZIP code 79996, located in El Paso County, Texas, presents a unique investment opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, set at $1150 for fiscal year 2024, serves as a benchmark for rental rates that voucher holders can afford. However, without specific data on the current market rent, it's challenging to determine how closely the FMR aligns with what landlords might charge.
To assess the cash flow potential for voucher tenants, we must compare the HUD FMR to typical market rents. If the market rent exceeds $1150, landlords would need to ensure that their properties are priced competitively or offer premium units to attract tenants. In such a scenario, cash flow would be marginal unless the landlord can manage expenses effectively below the voucher amount.
The median home value in ZIP 79996 is currently unavailable, making it difficult to calculate the exact rent-to-price ratio. This ratio is crucial for understanding the relative affordability of renting versus buying in the area. Without this figure, we cannot provide a precise comparison, but generally, a higher median home value would suggest that renting is more affordable, potentially leading to a stronger preference among residents to lease rather than purchase homes.
The days on market (DOM) and the percentage of homes that require price cuts are also critical indicators of the local real estate market health. Unfortunately, these figures are not available for ZIP 79996. These metrics would help investors gauge the difficulty in selling homes, which could influence buy-versus-rent decisions. A high DOM and a significant share of homes needing price reductions might indicate a sluggish market, favoring rental investments.
In summary, the HUD FMR of $1150 sets the baseline for rental income in ZIP 79996. While specific market rent data is missing, the cash flow for voucher tenants would depend on how market rents compare to the FMR. Given the lack of detailed market data, the strongest angle for investors in this area appears to be stability, as the consistent HUD funding provides a reliable source of income.
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.