Section 8 Fair Market Rent (FMR) for ZIP 75077 - 2027

Investment Score for ZIP 75077

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	$1,810
1 Bedroom	$1,870
2 Bedrooms	$2,200
3 Bedrooms	$2,770
4 Bedrooms	$3,520
5 Bedrooms	$4,083
6 Bedrooms	$4,573
7 Bedrooms	$4,939
8 Bedrooms	$5,186

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	$2,200	$371,057	0.59%	F
3BR	$2,770	$392,276	0.71%	D
4BR	$3,520	$567,094	0.62%	D
5BR	$4,083	$823,097	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75077 (Highland Village, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 75077 in 2026 are as follows: - 0BR: $1870 - 1BR: $1950 - 2BR: $2280 (which is 21.5% of the median household income) - 3BR: $2870 - 4BR: $3650 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for housing. However, comparing these figures to actual rents in Highland Village reveals significant discrepancies. The Zillow median price for a 2BR home is $370,031, which is 13.5 times the FMR for a 2BR unit. This high price-to-FMR ratio suggests that the actual rental market is far more expensive than what the FMR allows. Consequently, voucher holders face substantial constraints in finding affordable housing within the ZIP code. They are likely limited to smaller units or must seek housing outside of Highland Village where rents are lower. #### Affordability & Renter Profile Highland Village has a population of 42,950, with 22.3% of residents being renters. The occupancy rate stands at 97.4%, indicating a very tight rental market. Given the median household income of $127,211, the majority of residents can afford higher rents, but for those relying on Section 8 vouchers, the situation is challenging. A 2BR unit priced at $2280 per month represents only 21.5% of the median income, which means that even without subsidies, such units are relatively affordable for most residents. However, for the 22.3% who are renters and rely on vouchers, the high cost of living in Highland Village makes it difficult to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 75077 offers a mixed picture. The high occupancy rate and median income suggest strong demand for rental properties, but the disparity between actual rents and FMRs indicates that properties rented at FMR levels will struggle to attract tenants. For instance, a 2BR unit renting at $2280 per month would be significantly below market rates, making it hard to compete. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. Assuming average property management costs, taxes, insurance, and maintenance, the break-even point for a 2BR unit might be closer to the market rent rather than the FMR. Therefore, while there is a robust market for rentals, achieving profitability at FMR levels is unlikely. The investment grade for this ZIP code is moderate to low for Section 8-focused investors due to the difficulty in attracting voucher holders and the high competition from market-rate rentals. However, for investors willing to cater to the broader rental market, the outlook is more favorable given the strong demand and high median income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on developing or acquiring smaller units (0BR or 1BR) since they are more likely to be within the FMR limits and thus accessible to Section 8 voucher holders. For example, a 1BR unit renting at $1950 per month is more feasible for voucher holders compared to larger units. 2. **Consider Mixed-Income Developments**: To balance the needs of both voucher holders and market-rate renters, developers could consider mixed-income projects. These developments offer a range of unit sizes and rents, allowing some units to be rented at FMR levels while others are priced higher to ensure overall profitability. 3. **Utilize Location-Specific Amenities**: Given the high median income and tight rental market, properties with added amenities such as green spaces, community facilities, and proximity to schools and shopping centers may command higher rents. This strategy can help bridge the gap between FMR and market rates, making the investment more viable. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code due to the significant challenges in attracting voucher holders and the high competition from market-rate rentals. The investment environment is not conducive to achieving profitability solely through FMR-rented units. Instead, investors should consider areas with lower median incomes and more manageable price-to-FMR ratios. Alternatively, for those willing to cater to a broader rental market, Highland Village presents opportunities for cash-flow positive investments, but they should not rely exclusively on Section 8 vouchers for tenant acquisition.

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.