Section 8 Fair Market Rent (FMR) for ZIP 75033 - 2027

Investment Score for ZIP 75033

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	$1,920
1 Bedroom	$1,980
2 Bedrooms	$2,330
3 Bedrooms	$2,930
4 Bedrooms	$3,730
5 Bedrooms	$4,327
6 Bedrooms	$4,846
7 Bedrooms	$5,234
8 Bedrooms	$5,496

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	$2,330	$384,929	0.61%	D
3BR	$2,930	$480,326	0.61%	D
4BR	$3,730	$639,609	0.58%	F
5BR	$4,327	$830,273	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75033 (Frisco, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75033, as per the 2026 data, is set at $2550 for a two-bedroom unit. This amount represents 17.5% of the median household income of $174,762 in the area. However, the actual rent for a two-bedroom unit is significantly higher, with the Zillow median price being $400,401. The price-to-FMR ratio is 13.1x, indicating that actual rents are far above the FMR. For voucher holders, this means that finding affordable housing can be challenging due to the high discrepancy between FMR and actual rental prices. #### Affordability & Renter Profile ZIP code 75033 has a population of 52,795, with 30.4% of residents being renters. The occupancy rate stands at 95.6%, suggesting a tight market where demand outstrips supply. Given the median household income of $174,762, the majority of residents are likely to be well-off professionals or families who can afford the high rental costs. However, the 30.4% of renters would find it difficult to secure housing without assistance, as the actual rents are much higher than the FMR. #### Investor Angle From an investor’s perspective, the ZIP code 75033 presents a mixed picture. While the high median household income suggests strong economic fundamentals, the disparity between FMR and actual rents poses challenges for cash flow if relying solely on Section 8 vouchers. At the FMR of $2550 for a two-bedroom unit, investors would struggle to cover operational costs and achieve profitability given the actual rental market prices. The investment grade for this ZIP code is likely to be low for Section 8-focused investors due to the high cost of acquiring properties and the limited ability to charge rents that reflect the true market value. However, there might still be opportunities for investors willing to manage properties with a mix of market-rate and subsidized tenants. #### Specific Actionable Insights 1. **Diversify Tenants**: Investors should consider diversifying their tenant base by accepting both market-rate and Section 8 voucher holders. This approach can help balance the financial impact of lower rents from voucher holders with higher rents from market-rate tenants. For example, a property owner could charge $2550 for a Section 8 voucher holder and $4000 for a market-rate tenant, thereby achieving a better overall cash flow. 2. **Target Smaller Units**: Given the high price-to-FMR ratio, targeting smaller units like one-bedroom apartments might be more feasible. The FMR for a one-bedroom unit is $2180, which is still significantly below the market rate but closer to what some tenants might be able to afford. This strategy could help attract more Section 8 voucher holders while maintaining a reasonable level of profitability. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high actual rents compared to FMR make it difficult to achieve positive cash flow purely through Section 8 vouchers. Diversification of tenant types and targeting smaller units could mitigate some risks, but the overall market conditions suggest that this area is not ideal for such investments. Instead, investors might want to explore other ZIP codes with a lower price-to-FMR ratio and more favorable conditions for Section 8 properties.

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.