Section 8 Fair Market Rent (FMR) for ZIP 75051 - 2027

Investment Score for ZIP 75051

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	$1,180
1 Bedroom	$1,210
2 Bedrooms	$1,430
3 Bedrooms	$1,800
4 Bedrooms	$2,290
5 Bedrooms	$2,656
6 Bedrooms	$2,975
7 Bedrooms	$3,213
8 Bedrooms	$3,374

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	$1,430	$190,940	0.75%	D
3BR	$1,800	$249,765	0.72%	D
4BR	$2,290	$311,982	0.73%	D
5BR	$2,656	$365,241	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75051 (Grand Prairie, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75051 is set by HUD for 2026 as follows: - 0BR: $1250 - 1BR: $1300 - 2BR: $1530 (which is 31.5% of the median household income) - 3BR: $1930 - 4BR: $2450 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it's important to note that the actual rents in the area might differ significantly. The price-to-FMR ratio for a 2BR unit is 10.1x, which means that the Zillow median price for a 2BR property is $186,180. This implies that the actual rental costs could be much higher than the FMRs, creating significant constraints for voucher holders. For instance, if a landlord charges the Zillow median price, a voucher holder would only be able to cover $1530 per month, leaving a substantial gap between the actual rent and what the voucher covers. #### Affordability & Renter Profile ZIP code 75051 has a population of 40,884, with 49.2% of residents being renters. The occupancy rate is 93.8%, indicating a relatively tight rental market. Given that 31.5% of the median household income ($58,245) is allocated towards a 2BR unit's FMR ($1530), it suggests that many renters are likely to be low-income individuals who rely heavily on government assistance such as Section 8 vouchers to afford housing. The high percentage of renters and the occupancy rate indicate that there is strong demand for rental properties, but the affordability issue remains a significant challenge for those on fixed incomes or receiving government assistance. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. To determine this, we need to consider the typical rental yields and expenses associated with owning rental properties in this area. Based on the FMR data, a 2BR unit should ideally rent for $1530 per month to align with the Section 8 program. However, the Zillow median price of $186,180 suggests that the average cost of purchasing a 2BR property is quite high relative to the rental income it generates. To calculate the potential cash flow, we can use a simplified formula: \[ \text{Cash Flow} = \text{Monthly Rent} - (\text{Purchase Price} \times \text{Interest Rate})/12 \] Assuming a conservative interest rate of 5% for mortgage payments: \[ \text{Cash Flow} = \$1530 - (\$186,180 \times 0.05)/12 \] \[ \text{Cash Flow} = \$1530 - \$775.75 \] \[ \text{Cash Flow} = \$754.25 \] This calculation shows that even at the FMR level, an investor would still generate a positive cash flow of approximately $754.25 per month. However, this does not account for other expenses such as maintenance, property taxes, insurance, and utilities. These additional costs could potentially reduce the net cash flow to a point where it is less attractive for investors. In terms of investment grade, the high purchase price and the tight rental market suggest that while there is demand, the profitability might be limited unless investors can find properties below the median price or negotiate lower mortgage rates. Additionally, the high price-to-FMR ratio indicates that the rental market is not aligned with the FMRs, which could make it challenging for voucher holders to find affordable housing. #### Specific Actionable Insights 1. **Focus on Lower-Priced Properties**: Investors should target properties that are priced below the Zillow median to ensure a better cash flow. For example, a 2BR unit priced at $150,000 would have a monthly mortgage payment of around $625 at a 5% interest rate, leading to a positive cash flow of $905 per month, assuming the same rental yield and expenses. 2. **Consider Multi-Family Units**: Given the high demand for rentals and the constraints of single-family units, multi-family units (such as duplexes or small apartment buildings) might offer better returns. A 3BR or 4BR unit would have a higher FMR, potentially increasing the rental income and making the investment more viable. 3. **Negotiate with Landlords**: Since the actual rents are much higher than the FMRs, landlords might be willing to negotiate lower rents to attract Section 8 tenants. This negotiation could help bridge the gap between the FMR and the actual rent, making the properties more accessible to voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 75051 presents a mixed picture. While there is a strong demand for rental properties and the median household income supports some level of affordability, the high price-to-FMR ratio makes it challenging to find properties that offer a good return on investment. **Recommendation**: Hold. Investors should carefully evaluate the purchase price and potential rental income before committing to any investment. Focusing on lower-priced properties and negotiating with landlords could improve the viability of these investments, but the overall market conditions suggest a cautious approach. --- This analysis provides a detailed look into the rental market dynamics, affordability issues, and investment opportunities in ZIP code 75051 based solely on the provided data. It highlights the challenges faced by Section 8 voucher holders and offers specific insights for investors looking to navigate this market.

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.