Section 8 Fair Market Rent (FMR) for ZIP 75044 - 2027

Investment Score for ZIP 75044

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	$1,640
1 Bedroom	$1,690
2 Bedrooms	$1,990
3 Bedrooms	$2,510
4 Bedrooms	$3,190
5 Bedrooms	$3,700
6 Bedrooms	$4,144
7 Bedrooms	$4,476
8 Bedrooms	$4,700

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,990	$239,364	0.83%	C
3BR	$2,510	$311,149	0.81%	C
4BR	$3,190	$467,521	0.68%	D
5BR	$3,700	$623,317	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75044 (Garland, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75044 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom unit, the FMR is $2,130, which represents 27.7% of the median household income of $92,178. However, the actual rental market in Garland is significantly higher, with Zillow reporting a median price for a two-bedroom home at $242,872. This translates to a price-to-FMR ratio of 9.5x, indicating that the actual market rents are much higher than the FMR. For voucher holders, this means that they face significant constraints. The FMR of $2,130 is likely far below what landlords are charging in the area. Given the high price-to-FMR ratio, it is unlikely that voucher holders can find units that accept their vouchers without substantial difficulty. Landlords may be reluctant to accept vouchers due to the higher market rents available, leading to a potential mismatch between the supply of affordable housing and the demand from voucher holders. #### Affordability & Renter Profile ZIP code 75044 has a population of 47,529, with 41.1% of residents being renters. This indicates a strong rental market, but also suggests that there is significant competition among renters. With a high occupancy rate of 97%, the market is tight, and there is little room for oversupply. The median household income of $92,178 suggests that many residents have the financial capability to afford higher rents, but the 41.1% renter percentage implies that a considerable portion of the population relies on rental housing. Given the high price-to-FMR ratio, affordability is a major concern for renters, especially those who rely on Section 8 vouchers. The FMR is set at levels that are substantially lower than the market rents, making it difficult for low-income renters to find suitable housing. The tight market conditions mean that there is limited availability of units that are priced at or below the FMR, further exacerbating the challenge for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 75044 presents both opportunities and challenges. The actual market rents are much higher than the FMR, with a two-bedroom unit costing around $242,872 according to Zillow. At the FMR level of $2,130, investors would need to ensure that their properties are priced competitively to attract tenants. However, the high price-to-FMR ratio suggests that investors could potentially achieve better cash flow by pricing their units closer to market rates. The investment grade for this ZIP code would depend on various factors, including the ability to secure tenants willing to pay market rates, the competition from other rental properties, and the overall economic stability of the area. Given the strong rental market and high occupancy rate, there is a good chance that investors could achieve positive cash flow if they manage their properties effectively and price them appropriately. #### Specific Actionable Insights 1. **Focus on Market Rates**: Investors should consider pricing their units closer to the market rate rather than the FMR. For example, a two-bedroom unit priced at $2,130 might struggle to attract tenants, while a unit priced at $2,428 (the Zillow median) would likely be more competitive and profitable. 2. **Target Affordable Units**: If an investor is specifically targeting Section 8 voucher holders, they should focus on acquiring units that are already priced at or below the FMR. This would include units that are currently renting for $2,130 or less for a two-bedroom unit. These units would be more attractive to voucher holders and could provide a steady stream of income. 3. **Consider Mixed-Income Developments**: To balance the needs of voucher holders and market-rate tenants, investors might consider developing mixed-income properties. This would involve offering a range of units, some priced at the FMR and others at market rates, to cater to different segments of the rental market. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and tight rental market make it challenging to find units that are priced at or below the FMR. Additionally, the strong demand for market-rate rentals suggests that landlords are more likely to seek higher rents, reducing the attractiveness of accepting Section 8 vouchers. Investors looking to maximize returns in this area should focus on market-rate rentals rather than relying on Section 8 vouchers.

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.