Section 8 Fair Market Rent (FMR) for ZIP 75024 - 2027

Investment Score for ZIP 75024

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	$1,990
1 Bedroom	$2,050
2 Bedrooms	$2,410
3 Bedrooms	$3,030
4 Bedrooms	$3,860
5 Bedrooms	$4,478
6 Bedrooms	$5,015
7 Bedrooms	$5,416
8 Bedrooms	$5,687

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	$2,410	$362,756	0.66%	D
3BR	$3,030	$487,879	0.62%	D
4BR	$3,860	$636,323	0.61%	D
5BR	$4,478	$748,879	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75024 (Plano, TX) #### Section 8 Voucher Dynamics In ZIP code 75024, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,580 for 2026. However, the Zillow median price for a two-bedroom home in this area is $367,738, which translates to a price-to-FMR ratio of 11.9x. This indicates that the actual rent prices in the market are significantly higher than the FMR, making it challenging for tenants who rely on Section 8 vouchers. The FMR represents only 26.4% of the median household income in Plano, which stands at $117,088. Consequently, voucher holders are constrained by the limited availability of units that fall within their budget, which is typically capped at the FMR. #### Affordability & Renter Profile The high rent-to-price ratio suggests that this is a tight rental market with limited affordable options. Given that 62.4% of the population are renters, there is a significant demand for rental properties. The occupancy rate of 93.9% further supports this conclusion, indicating that most available units are quickly filled. The typical renter in ZIP 75024 likely has a higher income level to afford the market rates, but those relying solely on Section 8 vouchers face severe affordability challenges. With the median household income being relatively high, the majority of residents can afford market-rate rents, but this leaves a substantial gap for lower-income individuals who must find units within the FMR. #### Investor Angle From an investor perspective, the ZIP code 75024 presents a mixed scenario. While the market is tight and occupancy rates are high, the FMR is considerably lower than the actual market rents. For instance, the FMR for a two-bedroom unit is $2,580, whereas the Zillow median price implies a much higher rent. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields. Assuming a conservative rental yield of 5%, a property priced at $367,738 would generate approximately $18,387 annually, or $1,532 monthly. This is well below the FMR of $2,580, suggesting that investors might struggle to achieve positive cash flow when renting to Section 8 voucher holders at the FMR. The investment grade for this ZIP code would be considered moderate to low for Section 8-focused investors due to the disparity between FMR and market rents. Investors seeking to maximize returns might find better opportunities in areas where the FMR is closer to the actual market rents. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Focus on acquiring properties that are priced at or slightly above the FMR. For example, a two-bedroom unit should ideally be priced around $2,580 to cater to Section 8 voucher holders effectively. This strategy ensures that you remain competitive in the rental market while maximizing the potential for positive cash flow. 2. **Consider Renovation Projects**: If you already own properties in this ZIP code, consider renovating them to improve their appeal and justify slightly higher rents. This could help bridge the gap between the FMR and market rents, potentially allowing you to charge closer to the actual market rate while still being attractive to voucher holders. 3. **Develop Relationships with Local Agencies**: Establishing strong relationships with local housing authorities and social service agencies can provide insights into the needs of voucher holders and help streamline the leasing process. This can also lead to faster tenant placement and reduced vacancy periods. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 75024 is to **Skip**. The significant gap between the FMR and market rents makes it difficult to achieve positive cash flow, and the high demand for rental properties suggests that there are fewer units available within the FMR range. Investors looking to enter this market should carefully evaluate the financial feasibility of their investments and consider alternative ZIP codes where the FMR is more aligned with market rents.

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.