Location: Dallas, 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 | $2,090 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $4,050 |
| 5 Bedrooms | $4,698 |
| 6 Bedrooms | $5,262 |
| 7 Bedrooms | $5,683 |
| 8 Bedrooms | $5,967 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,530 | $368,772 | 0.69% | D |
| 3BR | $3,190 | $433,600 | 0.74% | D |
| 4BR | $4,050 | $624,995 | 0.65% | D |
| 5BR | $4,698 | $818,424 | 0.57% | F |
U.S. Census Bureau data (2024)
Frisco’s 75035 zip code represents the heart of one of North Texas’ most rapidly expanding suburbs, characterized by master-planned communities and a robust economy. The area is defined by extensive retail corridors and high-quality amenities, serving as a major draw for families relocating to the Dallas-Fort Worth metroplex. A key economic anchor driving this growth is The Star, the global headquarters of the Dallas Cowboys, which functions as a mixed-use district featuring offices, dining, and entertainment venues. This development significantly enhances the neighborhood's prestige and contributes to the area's reputation for safety and affluence.
From a strictly numerical standpoint, Frisco presents a challenging spread for voucher holders. The HUD Fair Market Rent (FMR) for a 2-bedroom unit sits at $2,780, while the estimated market rent (Zillow ZORI) is $2,213, creating a noticeable gap of $567. However, with a median home value of $647,057 and a median 2BR sale price of $379,109, acquisition costs are steep relative to rents. Properties linger on the market for a median of 86 days, suggesting that while pricing is high, inventory moves at a measured pace. Investors must weigh the high capital requirements against a modest rent-to-value ratio.
The tenant pool in this zip code is distinct, with only 23.3% of households renting and a median household income of $166,590. This demographic profile indicates that the local rental market is competitive and comprised largely of high-income earners who may eventually transition to homeownership. For families utilizing vouchers, the appeal lies in Frisco ISD, which is frequently rated among the best school districts in Texas, offering top-tier educational opportunities. The combination of affluent neighbors, excellent schools, and a safe environment ensures consistent demand, though the high-income baseline may limit the density of voucher applicants.
The Section 8 verdict for 75035 leans heavily toward long-term appreciation and stability rather than immediate cashflow maximization. While the $567 gap between the 2BR FMR and market rent offers a cushion, the exorbitant entry price and high median DOM compress immediate yields. The strongest investor angle here is asset preservation in a premium location; securing a voucher tenant guarantees a portion of the rent in a high-appreciation market, mitigating vacancy risk in an area where the high cost of living can deter standard renters during economic downturns.
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.