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 | $1,770 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $3,430 |
| 5 Bedrooms | $3,979 |
| 6 Bedrooms | $4,456 |
| 7 Bedrooms | $4,812 |
| 8 Bedrooms | $5,053 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,140 | $346,386 | 0.62% | D |
| 3BR | $2,690 | $406,766 | 0.66% | D |
| 4BR | $3,430 | $522,451 | 0.66% | D |
| 5BR | $3,979 | $686,047 | 0.58% | F |
U.S. Census Bureau data (2024)
McKinney’s 75070 ZIP code represents the affluent, suburban heart of Collin County, characterized by master-planned communities and a high quality of life. This area is widely recognized for its top-rated educational system, particularly the McKinney Independent School District, which serves as a major draw for families. Local infrastructure is robust, with easy access to the US-75 corridor, and the economy benefits significantly from major employers such as Raytheon, which maintains a substantial presence in the region supporting the area’s stable residential base.
From a strictly numerical standpoint, the market exhibits a challenging spread for subsidized housing. The HUD Fair Market Rent for a 2-bedroom unit stands at $2,070 in FY2024, rising to $2,230 by FY2026. However, current market data (Zillow ZORI) shows the going rate for a 2-bedroom is only $1,611. This creates a negative gap of $459 where the voucher payment standard exceeds market reality, a scenario that typically complicates leasing. The broader market shows a median home value of $478,776 and a moderate median days on market of 71 days, indicating a somewhat cooling sales environment compared to the peak of recent years.
Despite the high median household income of $112,352, the area maintains a significant renter share of 47.3%, suggesting a diverse pool of residents including young professionals and families not yet ready to buy. While the local population is wealthy, the presence of highly rated schools and extensive parks creates persistent demand from families who may fall into the voucher-eligible income bracket in this high-cost region. This demographic mix supports a consistent need for quality rental inventory, even if the immediate math on paper appears upside down.
The Section 8 verdict here leans heavily toward appreciation and stability rather than immediate cash flow. With market rents lagging behind the $2,230 FY2026 FMR, attempting to charge the maximum voucher amount is likely unrealistic without substantial upgrades. Investors should view the $478,776 median home value as the primary wealth driver, using the voucher program to minimize vacancy risk rather than to maximize monthly yield. The strong employer base and school ratings provide a safety net that protects asset value, making this a long-term hold play rather than a quick cash cow.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.