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 | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $137,614 | 0.9% | C |
| 3BR | $1,720 | $221,298 | 0.78% | D |
U.S. Census Bureau data (2024)
ZIP 75021, located within the Sherman-Denison, TX MSA, exhibits characteristics that position it as a mid-tier neighborhood relative to other ZIP codes in the same metropolitan area. The Fair Market Rent (FMR) for ZIP 75021 in fiscal year 2024 is set at $1240, which is slightly below the market rent of $1,362. This suggests that rental properties here are priced competitively, making them attractive to both low-income renters and those who might be seeking affordable options within the broader Sherman-Denison market.
The median home value in ZIP 75021 stands at $251,300, which is indicative of a moderate housing market. Home values in this range typically appeal to first-time buyers and moderate-income families looking for a stable investment. When compared to the overall Sherman-Denison, TX MSA, where home values can vary widely, the $251,300 figure places 75021 squarely in the middle tier, neither at the high end nor the low end of the spectrum.
A noteworthy aspect of ZIP 75021 is its 16.8% renter share. This percentage is higher than the average for many suburban areas but still lower than urban cores with a larger concentration of rental properties. A higher-than-average renter share, combined with below-market home values, could indicate a significant presence of Section 8 vouchers or other subsidized housing programs. This scenario often creates a sweet spot for landlords interested in Section 8 tenants, as it means a reliable stream of income through government subsidies without the need to compete with higher-priced markets.
In summary, ZIP 75021 represents a balanced option within the Sherman-Denison, TX MSA. Its slightly below-market FMR and market rent, coupled with moderate home values and a higher-than-average renter share, make it a mid-tier neighborhood with potential benefits for landlords participating in the Section 8 program. The combination of these factors suggests that while it may not offer the highest returns, it provides a stable and accessible market for both rental and homeownership investments.
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.