Section 8 Fair Market Rent (FMR) for ZIP 75006 - 2027

Investment Score for ZIP 75006

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,520
1 Bedroom	$1,560
2 Bedrooms	$1,840
3 Bedrooms	$2,320
4 Bedrooms	$2,950
5 Bedrooms	$3,422
6 Bedrooms	$3,833
7 Bedrooms	$4,140
8 Bedrooms	$4,347

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,560	$143,387	1.09%	B
2BR	$1,840	$256,204	0.72%	D
3BR	$2,320	$342,076	0.68%	D
4BR	$2,950	$457,121	0.65%	D
5BR	$3,422	$540,196	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75006 (Carrollton, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75006 is set by HUD for the year 2026. For a two-bedroom apartment, the FMR is $2010, which represents 28.4% of the median household income in Carrollton, TX. This indicates that the FMR is aligned with the affordability threshold for low-income households. However, the actual rent for a two-bedroom unit in Carrollton, TX, as per Zillow, is $255,654, which translates to a monthly rental cost of approximately $2,130 based on typical mortgage calculations. The price-to-FMR ratio of 10.6x suggests that actual rents are significantly higher than the FMR, creating a challenge for Section 8 voucher holders. They can only afford apartments priced at or below $2010 per month, which is well below the average market rate. Consequently, voucher holders face limited options and may struggle to find suitable housing within their budget. #### Affordability & Renter Profile With a population of 47,807 and a renter percentage of 48.5%, the ZIP code 75006 has a substantial number of renters. The occupancy rate of 95.6% indicates a very tight rental market where demand is high and supply is relatively constrained. Given the median household income of $84,815, it is clear that the majority of residents are middle-class individuals who can afford the higher-than-FMR rents. However, the 48.5% of renters includes a significant portion of lower-income individuals who rely on assistance such as Section 8 vouchers. These renters are likely to be facing considerable financial strain due to the disparity between actual rents and FMRs. #### Investor Angle From an investor perspective, the ZIP code 75006 presents a mixed picture. While the high occupancy rate and strong demand suggest potential for good cash flow, the significant gap between actual rents and FMRs poses challenges for those targeting Section 8 tenants. At the FMR of $2010 for a two-bedroom unit, the cash flow would be negative if investors were to price their properties according to the actual market rates. This means that landlords would need to either accept lower rents or seek other sources of income to make up for the shortfall. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors. The tight market and high demand for rentals indicate that there is potential for returns, but the alignment with Section 8 guidelines would limit the ability to charge market rates. Investors should carefully consider their target tenant base and the potential impact on their cash flow before making any investment decisions. #### Specific Actionable Insights 1. **Targeting Non-Section 8 Tenants**: Given the high occupancy rate and strong demand, investors might want to focus on non-Section 8 tenants. By setting rents closer to the actual market rate of $2,130, they can achieve positive cash flow and potentially higher returns. This strategy would involve marketing properties directly to middle-class renters who can afford the higher costs. 2. **Developing Affordable Housing**: To cater to the lower-income segment, investors could develop affordable housing units that are priced at or slightly above the FMR. This would require a detailed understanding of local regulations and subsidies available to ensure profitability while still providing affordable housing options. For instance, a two-bedroom unit priced at $2,010 would be attractive to Section 8 voucher holders, although it would result in lower cash flow compared to market-rate rentals. 3. **Exploring Mixed-Income Developments**: Another approach would be to create mixed-income developments where a portion of the units are reserved for Section 8 tenants and the rest are rented at market rates. This would help balance the cash flow and provide a range of housing options for different income levels. For example, allocating 25% of units to Section 8 tenants at $2,010 per month and renting the remaining 75% at $2,130 per month could provide a sustainable income model. #### Bottom Line For Section 8-focused investors, the ZIP code 75006 presents a challenging environment due to the significant gap between actual rents and FMRs. The recommendation would be to **skip** this ZIP code unless investors can find ways to develop affordable housing units or explore mixed-income developments. Otherwise, the negative cash flow at FMR levels makes it difficult to achieve profitability. For investors willing to target middle-class renters, the ZIP code offers a **buy** opportunity given the strong demand and high occupancy rates. However, these investors must be prepared to operate outside the constraints of Section 8 guidelines.

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.