Location: Sherman-Denison, TX | Metro: Sherman-Denison, TX MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $146,030 | 0.93% | C |
| 3BR | $1,880 | $230,578 | 0.82% | C |
| 4BR | $2,090 | $367,333 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 75020 in Denison, TX, is primarily a renter-heavy area with significant potential for Section 8 tenants. With a population of 24,835, over 40% of residents are renters, indicating a robust demand for rental properties. This high percentage of renters suggests that there is likely a strong presence of Section 8 vouchers within the community.
The median household income in this ZIP is $71,605, which provides a context for evaluating the affordability of the average market rent of $1,481. To put this into perspective, the typical rent consumes approximately 21% of the median household income. This figure is calculated by dividing the market rent by the annual median income ($1,481 / ($71,605/12)) and multiplying by 100. The Federal Market Rent (FMR) for FY 2024 is set at $1,170, which is lower than the current market rent, suggesting that some Section 8 tenants might find it challenging to cover the full cost of rent without additional support.
A landlord in 75020 can expect a tenant profile that includes individuals and families who rely on Section 8 vouchers to afford housing. These tenants will typically have an income level below the median for the area but above the poverty line. The discrepancy between the FMR and the market rent indicates that landlords should be prepared to accept a lower reimbursement rate from the government for Section 8 tenants, potentially requiring them to charge a slightly higher amount to tenants to make up the difference. However, given the high percentage of renters, the demand for affordable housing is likely to sustain this practice.
In summary, ZIP 75020 is well-suited for landlords interested in Section 8 tenants due to its renter-heavy demographic and the substantial voucher demand. Landlords should be aware of the financial dynamics at play, particularly the gap between the FMR and market rents, when setting expectations for their properties in this area.
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.