Section 8 Fair Market Rent (FMR) for ZIP 75050 - 2027

Investment Score for ZIP 75050

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	$1,480
1 Bedroom	$1,520
2 Bedrooms	$1,790
3 Bedrooms	$2,280
4 Bedrooms	$2,890
5 Bedrooms	$3,352
6 Bedrooms	$3,754
7 Bedrooms	$4,054
8 Bedrooms	$4,257

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	$1,790	$188,698	0.95%	C
3BR	$2,280	$280,294	0.81%	C
4BR	$2,890	$361,261	0.8%	D
5BR	$3,352	$447,355	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75050 (Grand Prairie, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75050 is set by HUD for 2026 and ranges from $1510 for a zero-bedroom unit to $2960 for a four-bedroom unit. The FMR for a two-bedroom unit is $1840, which represents 30.1% of the median household income in the area. This suggests that the FMR is aligned with the affordability guidelines set by HUD, which typically cap rent payments at 30% of a household’s income. However, it is important to consider how these FMRs compare to actual rents in the market. Actual rents can often exceed FMRs, especially in competitive markets. For instance, the Zillow median price for a two-bedroom home in ZIP 75050 is $188,471. Given the Price-to-FMR ratio of 8.5x, we can infer that the average rental cost for a two-bedroom unit is likely around $217.65 per month ($1840 * 8.5x). This means that actual rents are significantly higher than the FMR, creating a potential constraint for voucher holders who may struggle to find units within their budget. #### Affordability & Renter Profile ZIP code 75050 has a high renter population of 57.3%, indicating a strong demand for rental properties. With a median household income of $73,274, the majority of residents would be considered middle-class. The occupancy rate of 94.7% suggests that the rental market is tight, with few vacant units available. This high occupancy rate also implies that there is little room for new supply without increasing competition among landlords. Given the high proportion of renters and the tight market conditions, it is likely that many residents are already facing challenges in finding affordable housing. The median household income of $73,274, combined with the FMR for a two-bedroom unit being $1840, indicates that the typical resident can afford a two-bedroom unit under the FMR guidelines. However, the actual rental costs are much higher, making it difficult for many residents to find suitable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 75050 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1840, but the actual rental cost is estimated to be around $217.65 per month based on the Price-to-FMR ratio. This discrepancy between FMR and actual rents could lead to cash flow issues if investors rely solely on Section 8 vouchers. To determine the investment grade, we need to consider the potential for cash flow and the overall demand for rental properties. The high renter population and tight market suggest strong demand, but the significant gap between FMR and actual rents poses a risk. Investors should carefully evaluate whether they can attract non-voucher tenants willing to pay the higher market rates or if they must rely on voucher holders who may face difficulties in securing units. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Given the high actual rental costs, investors should focus on acquiring properties where the rent is below or at the FMR level. For example, a two-bedroom unit priced at $1840 or slightly above might still attract non-voucher tenants due to the tight market conditions. This strategy can help mitigate the risk of cash flow issues while still benefiting from the strong demand for rentals. 2. **Consider Multi-Family Properties**: Multi-family properties often have economies of scale that can make them more attractive to investors. A property with multiple units can spread the fixed costs across several tenants, potentially improving cash flow. Additionally, multi-family properties can cater to different family sizes, allowing for a mix of voucher and non-voucher tenants. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of Section 8 vouchers and any upcoming changes in policy. This can help investors plan their acquisitions and renovations more effectively, ensuring they are well-positioned to secure tenants through the voucher program. #### Bottom Line For Section 8-focused investors, the ZIP code 75050 presents a challenging environment due to the significant gap between FMR and actual rental costs. While there is strong demand for rental properties, relying solely on Section 8 vouchers may result in cash flow issues. Therefore, the recommendation is to **Skip** this ZIP code unless investors can acquire properties at or below the FMR levels and have strategies to attract a mix of voucher and non-voucher tenants. Otherwise, the high actual rental costs and tight market conditions may not align well with the goals of Section 8-focused investments.

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.