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 | $1,600 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,650 | $111,349 | 1.48% | A |
| 2BR | $1,940 | $221,430 | 0.88% | C |
| 3BR | $2,440 | $444,214 | 0.55% | F |
| 4BR | $3,110 | $708,261 | 0.44% | F |
| 5BR | $3,608 | $1,126,037 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 75038, located in Irving, Texas, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1,860, while the ZORI indicates a market rent of $1,399. This creates a significant gap of $461, or approximately 33%, where the FMR exceeds the market rent.
This scenario makes ZIP 75038 a prime location for a yield play, particularly for those who can attract voucher tenants. With a higher FMR compared to the actual market rent, landlords can potentially receive more than what the open market offers. The FMR is designed to cover the cost of renting a modest apartment in an area, ensuring that voucher holders can afford decent housing. In this case, landlords could benefit from receiving rents closer to the FMR, which is above the typical market rate.
Irving, TX, has a high percentage of renters at 80.4%, indicating a robust demand for rental properties. Additionally, the median home value stands at $464,218, suggesting that homeownership is less accessible for many residents. The median income in the area is $68,990, which aligns with the need for affordable housing options such as those supported by Section 8 vouchers. Given these conditions, the presence of a large number of potential voucher tenants could be beneficial for landlords looking to maximize their rental income.
However, it's important to note that accepting Section 8 tenants involves additional administrative tasks and adherence to HUD guidelines. Despite these considerations, the financial benefits of receiving rents at or near the FMR, which is higher than the prevailing market rate, outweigh the costs for most landlords. The gap of $461 per month represents a substantial increase in rental revenue, making ZIP 75038 a favorable investment choice for those interested in the Section 8 program.
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.