Section 8 Fair Market Rent (FMR) for ZIP 75072 - 2027

Investment Score for ZIP 75072

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	$2,240
1 Bedroom	$2,300
2 Bedrooms	$2,710
3 Bedrooms	$3,410
4 Bedrooms	$4,340
5 Bedrooms	$5,034
6 Bedrooms	$5,638
7 Bedrooms	$6,089
8 Bedrooms	$6,393

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	$2,710	$281,519	0.96%	C
3BR	$3,410	$410,339	0.83%	C
4BR	$4,340	$536,891	0.81%	C
5BR	$5,034	$743,259	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75072 (McKinney, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 75072, as provided by HUD for 2026, are as follows: - 0BR: $2380 - 1BR: $2470 - 2BR: $2900 - 3BR: $3650 - 4BR: $4640 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, comparing these FMRs to actual rents is crucial. The Zillow median price for a 2BR property in this ZIP code is $286,693. Given that the Price-to-FMR ratio is 8.2x, it suggests that the actual rental prices in the area are significantly higher than the FMRs. For instance, a 2BR unit with a median price of $286,693 would likely have a rental price around $2900 per month, which is exactly the FMR for a 2BR unit. This indicates that voucher holders might face significant challenges finding affordable housing within their budget constraints. #### Affordability & Renter Profile ZIP code 75072 has a population of 55,087, with 17.4% of residents being renters. The occupancy rate stands at 96.8%, suggesting a very tight rental market where most units are occupied. The median household income in the area is $165,682, which is quite high compared to national averages. This high income level implies that the typical resident in McKinney is financially stable and can afford higher rents. For a 2BR unit, the FMR of $2900 represents only 21.0% of the median income. This means that while the FMR is relatively low compared to the median income, it still represents a substantial portion of the income for lower-income households. Given the high median income and tight rental market, it is likely that many residents are willing to pay above the FMR for housing, making it difficult for voucher holders to find suitable properties. #### Investor Angle From an investor perspective, the ZIP code 75072 appears to be cash-flow positive at the FMR levels. The Zillow median price for a 2BR unit is $286,693, and the FMR is $2900 per month. Assuming a conservative estimate of 7% annualized rental yield, an investor could expect to generate approximately $34,800 in annual rental income from a 2BR unit. With a mortgage payment on a $286,693 property at a 4.5% interest rate over 30 years being roughly $1450 per month, the monthly net cash flow would be about $1450. This suggests that even at FMR levels, there is potential for positive cash flow. However, the investment grade is mixed due to the tight rental market and the difficulty in finding tenants who can only pay up to the FMR. Investors need to consider the likelihood of having to offer higher rents to attract tenants, which could reduce the overall profitability of the investment. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Since the FMR for a 2BR unit is $2900, investors should focus on acquiring properties that can be rented out at or slightly below this amount. This will increase the chances of attracting voucher holders and maintaining positive cash flow. For example, targeting properties priced around $2500-$2900 per month could be a strategic approach. 2. **Consider Multi-Family Properties**: Given the high median income and the tight rental market, multi-family properties might offer better opportunities for cash flow. Investors could look into acquiring small apartment buildings or duplexes where they can charge different rates for different units. This flexibility allows them to cater to both voucher holders and higher-paying tenants, optimizing their overall returns. 3. **Engage with Local Real Estate Agents**: To navigate the tight rental market effectively, investors should work closely with local real estate agents who have a deep understanding of the area. These agents can provide insights into which neighborhoods are more likely to have a higher concentration of voucher holders and help in negotiating rental prices that are competitive yet within the FMR limits. #### Bottom Line For Section 8-focused investors, ZIP code 75072 presents a challenging but potentially rewarding market. The tight rental market and high median income make it difficult to find properties that can be rented out solely based on FMR. However, with strategic targeting of lower-rent units and consideration of multi-family properties, investors can achieve positive cash flow. **Recommendation**: **Hold**. While the market is favorable for investors in general, the constraints posed by the FMR and the tight rental market suggest that a cautious approach is necessary. Investors should carefully evaluate the potential for attracting voucher holders and consider diversifying their portfolio to include a mix of property types and sizes to maximize returns.

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.