Section 8 Fair Market Rent (FMR) for ZIP 75028 - 2027

Investment Score for ZIP 75028

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	$2,130
1 Bedroom	$2,190
2 Bedrooms	$2,580
3 Bedrooms	$3,250
4 Bedrooms	$4,130
5 Bedrooms	$4,791
6 Bedrooms	$5,366
7 Bedrooms	$5,795
8 Bedrooms	$6,085

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,580	$405,743	0.64%	D
3BR	$3,250	$420,966	0.77%	D
4BR	$4,130	$600,894	0.69%	D
5BR	$4,791	$819,361	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75028 (Flower Mound, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Flower Mound, TX (ZIP 75028), as of 2026, is set at $2800 for a two-bedroom unit. This figure represents 22.5% of the median household income of $149,436, which suggests that it is relatively affordable for those who qualify for Section 8 vouchers. However, the actual rent for a two-bedroom unit can be significantly higher. According to Zillow, the median price for a two-bedroom rental property is $415,130, which translates to a monthly rent of approximately $3459 if we assume a 1% monthly rent rate. This means that the actual rent is about 1.24 times the FMR, as indicated by the Price-to-FMR ratio of 12.4x. This high ratio implies that Section 8 voucher holders face significant constraints in finding suitable housing within their budget. The maximum allowable rent under the voucher program is capped at the FMR, meaning that voucher holders would struggle to find two-bedroom units that cost $2800 or less. This could lead to a shortage of available properties for voucher recipients, potentially forcing them into smaller units or less desirable locations. #### Affordability & Renter Profile Given the median household income of $149,436, Flower Mound is a high-income area. Only 19.7% of the population are renters, indicating a strong owner-occupied market. The occupancy rate of 97.6% suggests that the rental market is quite tight, with very few vacant units available. This tight market condition makes it challenging for renters, especially those relying on Section 8 vouchers, to find affordable housing. The high median income also indicates that most residents can afford to pay above the FMR for housing. For example, a two-bedroom unit priced at $415,130 would represent only 2.78% of the median household income, making it relatively easy for local residents to secure such rentals without assistance. However, for those who do need assistance, the limited supply of affordable units poses a significant challenge. #### Investor Angle From an investor perspective, the ZIP code 75028 presents a mixed picture. While the high median income and low vacancy rates suggest a robust demand for rental properties, the tight market dynamics mean that there is little room for lower-priced rentals. Investors looking to operate at the FMR level would likely face challenges in finding tenants willing to pay the higher actual rents, but not exceeding the FMR. To determine if this ZIP code is cash-flow positive at the FMR, we must consider the typical operating costs and potential revenue. Assuming a two-bedroom unit at the FMR of $2800, the annual rental income would be $33,600. Given the high median home value and the tight market, the cost of acquisition and maintenance would likely be substantial. If we consider a conservative estimate of 30% of the rental income going towards operating expenses (including taxes, insurance, utilities, and maintenance), the net cash flow would be around $23,520 annually. This suggests that while the market is lucrative, operating at the FMR level might not be highly profitable due to the high costs associated with maintaining properties in a high-value area. In terms of investment grade, Flower Mound is rated as a high-grade investment due to its strong economic indicators and high demand for rentals. However, the tight market and the high actual rents compared to the FMR indicate that the investment should be carefully considered, particularly for those focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high actual rents relative to the FMR, investors might find it more feasible to target one-bedroom or studio units. The FMR for a one-bedroom unit is $2390, which is significantly lower than the median Zillow price for a two-bedroom unit. This could provide better opportunities for cash flow and tenant acquisition within the Section 8 program. 2. **Consider Outlying Areas**: Since the actual rents in Flower Mound are much higher than the FMR, investors might want to look at outlying areas within Denton County where the actual rents are closer to the FMR. This would allow for easier tenant acquisition and potentially higher profitability. 3. **Diversify Tenant Mix**: To mitigate the risk of operating exclusively within the Section 8 program, investors could consider diversifying their tenant mix. By targeting a combination of Section 8 voucher holders and other renters, they can balance the financial risks and ensure a steady stream of income. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 75028 (Flower Mound, TX) is to **Skip**. The high actual rents and tight market conditions make it difficult to find properties that fit within the FMR guidelines. Additionally, the high costs associated with maintaining properties in a high-value area like Flower Mound reduce the potential for significant cash flow. Instead, investors might find better opportunities in outlying areas within Denton County where the actual rents are closer to the FMR and the market is less constrained.

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.