Section 8 Fair Market Rent (FMR) for ZIP 75023 - 2027

Investment Score for ZIP 75023

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	$1,810
1 Bedroom	$1,870
2 Bedrooms	$2,200
3 Bedrooms	$2,770
4 Bedrooms	$3,520
5 Bedrooms	$4,083
6 Bedrooms	$4,573
7 Bedrooms	$4,939
8 Bedrooms	$5,186

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	$2,200	$277,770	0.79%	D
3BR	$2,770	$374,000	0.74%	D
4BR	$3,520	$506,339	0.7%	D
5BR	$4,083	$660,537	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75023 (Plano, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75023, as set by HUD for 2026, is $2200 for a two-bedroom unit. This represents 24.1% of the median household income of $109,660 in the area. However, the actual rent for a two-bedroom unit is significantly higher. According to Zillow, the median price for a two-bedroom rental property in 75023 is $278,631, which translates to an average monthly rent of approximately $2322 when considering typical mortgage payments and expenses. This means that the actual rent is slightly above the FMR but still within a reasonable range for voucher holders. However, there are constraints for voucher holders. The FMR sets a cap on how much a voucher holder can pay, so landlords must ensure their rents do not exceed these limits. For instance, a three-bedroom unit has an FMR of $2770, while a four-bedroom unit has an FMR of $3520. These figures suggest that landlords might need to adjust their pricing to remain competitive yet compliant with the voucher program. #### Affordability & Renter Profile ZIP code 75023 has a population of 49,229, with 35.9% of residents being renters. This indicates a significant demand for rental properties in the area. The occupancy rate stands at 96.2%, suggesting a tight rental market where most available units are occupied. Given the high median household income of $109,660, the typical renter profile would likely include individuals or families who are financially stable but may still require assistance through the Section 8 voucher program due to the high cost of living in Plano. The affordability of housing is a critical issue. With the FMR for a two-bedroom unit being only $2200, compared to the actual median rent of $2322, it is evident that the market is relatively expensive. The price-to-FMR ratio of 10.6x further underscores the disparity between the cost of owning a home and renting one. This makes it challenging for low-income households to find affordable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 75023 offers a mixed picture. The FMR for a two-bedroom unit is $2200, which is lower than the actual median rent of $2322. However, the FMR is designed to be a benchmark for affordability, and investors should consider whether they can achieve cash flow positive returns at these rates. To determine if this ZIP code is cash-flow positive at FMR, we need to look at the potential rental income versus the costs. Assuming an average monthly rent of $2322 for a two-bedroom unit, the annual rental income would be $27,864. If we consider the median home value of $278,631, the typical mortgage payment for a two-bedroom home could be around $1400 per month, based on a 4% interest rate and a 30-year fixed mortgage. Adding in other expenses such as property taxes, insurance, maintenance, and utilities, the total monthly cost might be around $1800. This leaves a net positive cash flow of about $522 per month, or $6,264 annually, assuming the property is rented at the actual median rate. However, if the property is rented strictly at the FMR of $2200, the net cash flow would be around $400 per month, or $4,800 annually. This suggests that while the market is tight, achieving positive cash flow at FMR may be challenging unless investors can reduce their operating costs or find ways to increase rental income. #### Specific Actionable Insights 1. **Adjust Pricing to Remain Competitive**: Landlords should aim to keep their rents just below the actual median rent to attract tenants while ensuring compliance with the Section 8 voucher program. For example, setting the rent for a two-bedroom unit at $2250 would be a strategic balance between market rates and FMR. 2. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units like one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1880, which is significantly lower than the median rent for larger units. This could provide a better opportunity for cash flow positive investments. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 75023 is **Hold**. While the market is tight and there is a significant demand for rental properties, the high price-to-FMR ratio and the challenge of achieving positive cash flow at FMR make it a risky investment. Investors should carefully consider their ability to manage costs and potentially adjust their focus to smaller units or seek additional revenue streams to offset the lower rental rates allowed by the voucher program.

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.