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 | $1,730 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $312,269 | 0.67% | D |
| 3BR | $2,640 | $363,170 | 0.73% | D |
| 4BR | $3,360 | $615,539 | 0.55% | F |
| 5BR | $3,898 | $848,056 | 0.46% | F |
U.S. Census Bureau data (2024)
The Colony (ZIP 75056) functions as a thriving suburban hub in Denton County, anchored heavily by the massive Grandscape entertainment and retail development which draws significant regional traffic to the area. This master-planned community features extensive parks, access to Lewisville Lake, and a reputation for family-friendly living, making it a consistent draw for renters seeking suburban amenities with proximity to the Dallas Metroplex.
From a numerical standpoint, the HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,220, while current market rents (Zillow ZORI) average $1,809, leaving a tangible gap of $411 in favor of market rates. The median home value sits at $490,998, with properties spending a median of 69 days on market before selling. For voucher holders, this dynamic suggests that securing a unit at the FMR ceiling may require negotiation, as standard market pricing lags behind the HUD allowance.
With 40.6% of households renting and a median household income of $119,682, the local tenant pool is generally high-earning, yet the cost of entry for homeownership—evidenced by a median 2BR sale price of $318,710—keeps renting a viable long-term strategy. The area is served by the highly-rated Lewisville Independent School District, adding sustained demand from families, while major employers like FedEx Office and myriad logistics firms near the Grandscape complex support a stable workforce.
The strongest investor angle here is stability mixed with potential upside. While the immediate cashflow on a standard 2BR unit is tighter under the FMR compared to market rents, the high median income and desirable school ratings indicate low vacancy risk and excellent prospects for appreciation. Investors can leverage the $411 positive spread between FMR and market rent to upgrade units, justifying rents that bridge the gap while capitalizing on a affluent renter demographic.
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.