Location: Sherman-Denison, 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 | $1,340 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $2,620 | $685,675 | 0.38% | F |
U.S. Census Bureau data (2024)
19.1% of residents in ZIP 75058 are renters, indicating a significant demand for rental properties. This makes it an attractive market for landlords and small-portfolio investors looking to capitalize on rental opportunities. The $1670 Fair Market Rent (FMR) set for zip code 75058 for fiscal year 2024 suggests that rental units can be priced competitively while still being within the range supported by the government for Section 8 housing vouchers. In comparison, the $1,636 average market rent based on Census ACS data shows that rental prices are slightly below the FMR, leaving room for potential increases without alienating tenants.
$668,883 is the median home value in the area, which is relatively high and could indicate strong property appreciation over time. For those interested in long-term investments, this figure points towards the potential for capital gains. However, the $125,694 median income suggests that many households may struggle to afford homeownership, further supporting the demand for rental properties. Additionally, the 0.2% price-cut share indicates that few landlords are forced to lower their rents, implying a stable rental market.
In summary, ZIP 75058 offers a robust environment for rental property investment, with a substantial portion of the population renting and the median income being lower than the median home value. The Fair Market Rent aligns closely with the actual market rent, making it feasible for Section 8 voucher holders to find suitable housing. Given these factors, ZIP 75058 is a good market for Section 8 participation.
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.