Section 8 Fair Market Rent (FMR) for ZIP 75007 - 2027

Investment Score for ZIP 75007

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: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,840	$322,954	0.57%	F
3BR	$2,320	$371,102	0.63%	D
4BR	$2,950	$492,592	0.6%	F
5BR	$3,422	$685,938	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75007 (Carrollton, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75007 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1,990. This amount represents 21.4% of the median household income in Carrollton, which is $111,521. However, it is important to note that the actual rental rates in Carrollton are significantly higher than the FMR. According to Zillow, the median price for a two-bedroom home is $322,209. The price-to-FMR ratio for a two-bedroom unit is 13.5 times, indicating that the actual rent prices are much higher than what is covered by the Section 8 vouchers. This means that tenants who rely on Section 8 vouchers will face significant challenges finding units that fall within the FMR guidelines. Landlords may be hesitant to accept vouchers due to the high disparity between FMR and market rents, leading to potential constraints for voucher holders in securing affordable housing. #### Affordability & Renter Profile Carrollton has a population of 54,646, with 32.6% of residents being renters. This suggests a substantial rental market, but the occupancy rate of 95.8% indicates that the market is relatively tight. With such a high occupancy rate, there is likely a strong demand for rental properties, which could contribute to the higher-than-average rental prices. Given the median household income of $111,521, the majority of residents can afford higher rent prices. However, the 32.6% of renters may struggle to find affordable options, especially those relying on Section 8 vouchers. The FMR for a three-bedroom unit is $2,510, while the four-bedroom unit FMR is $3,190. These figures are still far below the actual market rents, suggesting that many renters might need to spend a significant portion of their income on housing. #### Investor Angle From an investor perspective, the ZIP code 75007 presents a challenging environment for cash flow if relying solely on FMR. The FMR for a two-bedroom unit is $1,990, whereas the actual median rent price is likely much higher, given the price-to-FMR ratio of 13.5 times. This implies that landlords accepting Section 8 vouchers would need to manage their properties with a lower rental income compared to the market average. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors. While the area has a high occupancy rate and a strong rental market, the limited number of units that fall within the FMR guidelines makes it difficult to achieve positive cash flow without additional subsidies or incentives. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units, such as one-bedroom or studio apartments, where the FMR is lower ($1,700 and $1,630 respectively). This could provide a better chance of finding units that align with the voucher program, thereby ensuring a steady stream of rental income. 2. **Seek Additional Subsidies**: Investors should explore opportunities for additional subsidies or partnerships with local government programs that offer financial assistance beyond the standard Section 8 voucher. This could help bridge the gap between the FMR and the actual market rents, making the investment more viable. 3. **Consider Mixed-Income Developments**: Developing mixed-income housing projects could be a strategic approach. By offering a mix of Section 8 units and market-rate rentals, investors can balance the lower income from voucher units with higher income from market-rate units. This strategy can also help attract a broader range of tenants and potentially increase property value over time. #### Bottom Line For Section 8-focused investors, the ZIP code 75007 (Carrollton, TX) is a **Skip** recommendation. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow through traditional Section 8 vouchers alone. Investors looking to enter this market should consider alternative strategies or seek additional subsidies to ensure the feasibility of their investments.

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.