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 | $2,000 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,060 |
| 4 Bedrooms | $3,890 |
| 5 Bedrooms | $4,512 |
| 6 Bedrooms | $5,053 |
| 7 Bedrooms | $5,457 |
| 8 Bedrooms | $5,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,430 | $360,693 | 0.67% | D |
| 3BR | $3,060 | $389,028 | 0.79% | D |
| 4BR | $3,890 | $526,293 | 0.74% | D |
| 5BR | $4,512 | $666,683 | 0.68% | D |
U.S. Census Bureau data (2024)
McKinney’s 75071 zip code represents the historic, downtown-adjacent heart of one of the fastest-growing cities in North Texas. This area is defined by its revitalized town square, a robust mix of Victorian-era architecture and modern infill development, and a strong sense of community that consistently ranks it among the best places to live nationally. The local economy benefits significantly from the presence of major employers, including the headquarters of Raytheon, an aerospace and defense giant that provides a stable high-income employment base for the region. The neighborhood character balances walkable urban amenities with family-friendly suburban living.
From a pure numbers perspective, the Section 8 opportunity in 75071 is substantial. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is set at $2,640, while current market rents (Zillow ZORI) average only $1,842. This creates a premium gap of $798 per month for voucher-compliant units. Property valuations are high, with a median home value of $483,592 and a median 2BR sale price of $360,952, but the trade-off is liquidity; the median days on market sits at 90 days. Because the HUD payment standard far exceeds the going market rate, voucher tenants effectively offer guaranteed revenue above what typical market tenants might pay.
Demand in this area is bolstered by the high median household income of $132,447 and a renter share of 25.7%, indicating a population that can generally afford quality housing but faces competition for inventory. Families are drawn to the highly-rated McKinney Independent School District, and the area’s proximity to major thoroughfares like US-75 ensures manageable transit for commuters. The combination of top-tier schools and the cultural draw of the downtown square sustains a healthy, competitive rental environment even outside the voucher program.
The Section 8 verdict for 75071 is a clear buy for cash-flow stability, provided acquisition costs are managed. The $798 spread between the 2BR FMR and market rent allows investors to build a significant buffer against maintenance costs or vacancy, a rarity in markets where FMRs usually lag behind market rates. While the 90-day DOM suggests a slower sales cycle, the ability to secure rents well above the local market floor makes this zip code a defensive, high-yield play for patient landlords.
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.