Location: Fort Worth-Arlington, TX | Metro: Dallas, TX HUD Metro FMR Area
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 | $1,990 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,420 | $427,834 | 0.57% | F |
| 3BR | $3,060 | $604,558 | 0.51% | F |
| 4BR | $3,870 | $743,351 | 0.52% | F |
| 5BR | $4,489 | $1,206,190 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 75022, located in Flower Mound, TX, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2630, while the market rent, as measured by ZORI (Zillow Observed Rent Index), is $2706. This creates a gap of $76, representing approximately 2.9% of the market rent.
Given that the FMR is lower than the market rent, it's important to understand the implications for landlords and small-portfolio investors. The difference means that landlords accepting Section 8 vouchers will be renting their properties below the open-market rates. In Flower Mound, where only 15.3% of residents are renters and the median home value is $772,855, the appeal of Section 8 housing might seem limited. However, the median household income of $177,357 suggests that while there is significant wealth in the area, there remains a segment of the population that relies on government assistance to afford housing.
The cost of housing voucher tenants below open-market rates is a trade-off between stability and yield. While the rental income may be slightly less than what could be obtained from market-rate tenants, the predictability and reliability of Section 8 payments can offer a stable cash flow. Landlords should also consider the administrative ease of working with a government-backed program, which can reduce the risk of non-payment and the time spent on tenant screening.
Moreover, the gap between FMR and market rent indicates that landlords in ZIP 75022 can still achieve a reasonable return on investment even when renting to voucher holders. The slight discount on rent compared to market rates does not necessarily translate into a significant reduction in overall property value or profitability, especially when considering the broader economic context of Flower Mound. The high median home value and income levels suggest that the local economy can support various forms of housing, including subsidized units.
In conclusion, the $76 gap between FMR and market rent in ZIP 75022 presents an opportunity for landlords to participate in a stable rental market while serving a segment of the community that needs affordable housing options. Although the income from voucher tenants is slightly below market rates, the benefits of consistent payment and reduced tenant turnover make this a viable strategy for achieving long-term yields.
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.