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 | $1,280 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $214,599 | 0.72% | D |
| 3BR | $1,950 | $268,715 | 0.73% | D |
| 4BR | $2,480 | $301,757 | 0.82% | C |
| 5BR | $2,877 | $334,893 | 0.86% | C |
U.S. Census Bureau data (2024)
The ZIP code 75042 in Garland, TX stands out within Dallas County due to its unique demographic and economic characteristics. With a population of 38,112 residents, it has a significant rental market share at 41.5%, indicating a strong demand for housing options beyond homeownership. The median income of $64,266 suggests a middle-class community, while the median home value of $274,047 reflects a moderate cost of living relative to other areas in the county.
For landlords and small-portfolio investors, the dynamics of Section 8 vouchers in ZIP 75042 are particularly noteworthy. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,470, which is notably higher than the market rent (ZORI) of $1,384. This discrepancy indicates that landlords participating in the Section 8 program can potentially charge more than the average market rate, providing a financial advantage. However, the higher FMR also signals a need for landlords to ensure their properties meet the quality standards required by the program, as tenants may have access to better rental options.
Based on the data provided, ZIP 75042 appears to be in a stable phase. The relatively high median income supports a steady demand for both rental and homeownership opportunities, while the moderate median home value suggests that the area is neither experiencing rapid gentrification nor significant decline. The slight increase in the FMR compared to the ZORI points towards a balanced market where government assistance is slightly above but still closely aligned with market conditions, making it a favorable environment for those looking to invest in rental properties through 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.