Section 8 Fair Market Rent (FMR) for ZIP 75013 - 2027

Investment Score for ZIP 75013

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	$1,680
1 Bedroom	$1,730
2 Bedrooms	$2,040
3 Bedrooms	$2,570
4 Bedrooms	$3,270
5 Bedrooms	$3,793
6 Bedrooms	$4,248
7 Bedrooms	$4,588
8 Bedrooms	$4,817

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	$2,040	$381,750	0.53%	F
3BR	$2,570	$480,618	0.53%	F
4BR	$3,270	$664,985	0.49%	F
5BR	$3,793	$832,256	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75013 (Allen, TX) #### Section 8 Voucher Dynamics In Allen, TX (ZIP 75013), the Fair Market Rent (FMR) figures for 2026 indicate that a two-bedroom unit should rent for $2250 per month. However, the Zillow median price for a two-bedroom home is $388,900, which translates to a price-to-FMR ratio of 14.4x. This suggests that actual rental prices in the area are significantly higher than the FMR guidelines. For instance, a typical two-bedroom apartment might be priced closer to $3889 per month based on the Zillow median, far exceeding the $2250 FMR. This creates a significant constraint for voucher holders who can only afford units up to the FMR limit. Consequently, voucher holders may struggle to find suitable housing options in this market due to the substantial gap between FMR and actual rental rates. #### Affordability & Renter Profile The median household income in ZIP 75013 is $146,891, indicating a relatively affluent population. Given that 36.4% of residents are renters, it is clear that there is a significant demand for rental properties in this area. The occupancy rate of 93.4% further supports the notion that the market is tight, with most available units being occupied. Considering the high median income and the fact that 2BR FMR represents only 18.4% of the median income, it is evident that the majority of renters in this ZIP code can afford to pay well above the FMR. Therefore, the market is likely to be competitive, with landlords able to charge premium rents. This makes it challenging for low-income renters, particularly those relying on Section 8 vouchers, to secure affordable housing. #### Investor Angle From an investor perspective, the ZIP 75013 market presents both opportunities and challenges. While the actual rental prices are much higher than the FMR, the potential for cash flow positive investments at FMR levels is limited. For example, a two-bedroom unit renting at $2250 per month would need to have a purchase price around $225,000 to achieve a reasonable cash flow, given typical mortgage rates and expenses. However, the median home price of $388,900 means that even a modestly priced two-bedroom unit would likely cost significantly more than $225,000. Thus, investors focusing solely on Section 8 rents would face difficulties generating positive cash flow. Despite these challenges, the high occupancy rate and strong demand for rental properties suggest that the overall investment grade is good. Investors could consider targeting the broader rental market rather than just Section 8, where they could potentially command higher rents and achieve better returns. #### Specific Actionable Insights 1. **Target Premium Rentals**: Given the high median income and the fact that many renters can afford to pay well above the FMR, investors should focus on developing or acquiring properties that cater to the premium rental market. A two-bedroom unit renting at $3889 per month would be more aligned with the local rental prices and offer better cash flow potential. 2. **Consider Mixed-Income Developments**: To address the needs of both low-income and higher-income renters, investors might explore mixed-income developments. These projects could include a mix of units, some of which are priced at or below the FMR for voucher holders, while others are priced at market rates. This approach would help ensure a steady stream of tenants and potentially qualify for government incentives aimed at increasing affordable housing stock. #### Bottom Line For investors focused specifically on Section 8 vouchers, the ZIP 75013 market is not recommended. The significant disparity between FMR and actual rental prices makes it difficult to achieve positive cash flow. Instead, investors should consider the broader rental market where they can command higher rents. If the goal is to provide affordable housing while still maintaining profitability, mixed-income developments might be a viable option. Overall, the recommendation is to **skip** this ZIP code for pure Section 8 investments but to **hold** or **buy** if considering a broader rental strategy.

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.