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 | $1,570 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $192,139 | 0.99% | C |
| 3BR | $2,390 | $277,780 | 0.86% | C |
| 4BR | $3,040 | $352,661 | 0.86% | C |
| 5BR | $3,526 | $454,664 | 0.78% | D |
U.S. Census Bureau data (2024)
Garland’s 75040 zip code offers a stable, family-oriented environment defined by its mature subdivisions and convenient access to the wider Dallas metroplex. The area is characterized by a mix of mid-century housing and modern retail conveniences, making it a practical choice for long-term residents. A key institutional anchor here is the Garland Independent School District, which provides a reliable draw for families, alongside the city’s major employment hubs like the Raytheon Intelligence & Space facility, which supports a diverse local economic base.
From a cash-flow perspective, the math in 75040 requires a careful look at the spreads. The HUD SAFMR for a 2-bedroom unit is $1,700, while current market rents (Zillow ZORI) sit higher at $1,826, creating a gap of $126 where market rates outpace the voucher subsidy. Investors should also note the median home value is $278,970, with properties moving relatively slowly at a median of 50 days on market. This data suggests that while asset values are substantial, the rental market offers only a modest premium over HUD limits.
The tenant pool is bolstered by a solid 33.2% renter share and a median household income of $74,519, indicating a population that can generally afford stable housing. With reputable schools and proximity to major highways like I-635 (LBJ Freeway), the neighborhood attracts working-class families who may qualify for or utilize housing vouchers. This demographic mix suggests steady demand for quality 2- and 3-bedroom units, particularly those near the district’s better-rated campuses.
The strongest investor angle in 75040 is stability rather than aggressive cash-flow. The $126 gap between market rent and the 2BR SAFMR means voucher yields will lag slightly behind the open market. However, the $278,970 median home value points to a market with strong underlying asset appreciation and lower risk profile compared to volatile entry-level neighborhoods. Investors should target this area for long-term holds, leveraging the local school district and employment anchors to minimize vacancy, accepting that the Section 8 checks will cover the bulk of expenses but not maximize immediate returns.
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.