Location: Sherman-Denison, TX | Metro: Sherman-Denison, TX MSA
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 | $1,260 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $222,267 | 0.72% | D |
| 3BR | $2,220 | $344,883 | 0.64% | D |
| 4BR | $2,460 | $496,911 | 0.5% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 75076, Pottsboro, TX, in fiscal year 2024 is set at $1460. This figure represents the payment standard for Section 8 housing vouchers, meaning it's the maximum amount that the government will pay towards your tenant's rent. It does not necessarily reflect the actual rent you can charge, which should be competitive with market rates.
To put this into perspective, the Zillow Observed Rental Index (ZORI) for the area is currently at $1,425 per month. This indicates that the FMR is slightly above the average market rent, making it a reasonable benchmark for setting your own rent price. However, remember that the FMR is not a guaranteed income; you must still find tenants willing to pay the total rent, with the voucher covering up to $1460 of that amount.
The 18.2% renter share suggests that nearly one in five households in Pottsboro are renters, indicating a steady demand for rental properties. This percentage ensures that there is a sufficient number of potential tenants who might be interested in your property through the Section 8 program.
If you're looking to acquire a property in this ZIP code, the median home value stands at $338,030. This figure reflects the typical cost of purchasing a home in the area, which can help you estimate your initial investment. Keep in mind that this doesn't include additional costs such as repairs, maintenance, and property management fees.
Before proceeding with your first Section 8 rental, verify that the property meets the Housing Quality Standards (HQS) required by the Department of Housing and Urban Development (HUD). These standards ensure that the property is safe, decent, and sanitary, and failing to meet them could result in disqualification from the program. Once you confirm compliance with HQS, you can confidently move forward with listing your property under the Section 8 program.
In summary, with an FMR of $1460 and a ZORI of $1,425, you have a solid basis for pricing your rental property. The 18.2% renter share points to a viable market for Section 8 tenants, and the acquisition cost of around $338,030 gives you a realistic expectation of the investment needed. Just make sure to check that your property meets the necessary safety and quality standards before you finalize your decision.
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.