Section 8 Fair Market Rent (FMR) for ZIP 75078 - 2027

Investment Score for ZIP 75078

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	$2,140
1 Bedroom	$2,200
2 Bedrooms	$2,590
3 Bedrooms	$3,260
4 Bedrooms	$4,150
5 Bedrooms	$4,814
6 Bedrooms	$5,392
7 Bedrooms	$5,823
8 Bedrooms	$6,114

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,590	$423,934	0.61%	D
3BR	$3,260	$508,511	0.64%	D
4BR	$4,150	$722,392	0.57%	F
5BR	$4,814	$888,254	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75078 (Prosper, TX) #### Section 8 Voucher Dynamics In ZIP code 75078, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $2790 per month, which represents 17.0% of the median household income of $196,564. This FMR is significantly lower than the actual rent prices in the area. For instance, the Zillow median price for a two-bedroom home is $431,777, indicating that the average monthly mortgage payment would be much higher than the FMR. The price-to-FMR ratio of 12.9x suggests that actual rental prices are about 12.9 times the FMR, making it challenging for Section 8 voucher holders to find affordable housing. The constraints for voucher holders are evident: the $2790 FMR is far below what landlords might charge given the high median home values. As such, voucher holders would likely struggle to find units that accept their vouchers without substantial out-of-pocket expenses. #### Affordability & Renter Profile ZIP code 75078 has a relatively low renter percentage of 10.4%, indicating that the majority of residents own their homes. With a population of 53,011 and a median household income of $196,564, the area is affluent, which further supports the trend towards homeownership. The occupancy rate of 95.0% suggests that the market is tight, with few vacant units available. Given the high median income and low renter percentage, those who do rent in this area are likely to be well-off individuals or families who can afford higher rent prices. The limited supply of rental units and the high cost of living make it a challenging environment for low-income renters, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 75078 presents a mixed picture. While the FMRs are lower than actual rents, the high price-to-FMR ratio means that properties rented at FMR levels would likely generate negative cash flow. For example, a two-bedroom unit renting at $2790 per month would not cover the costs associated with owning a property valued at $431,777. Investment-grade properties in this ZIP code would need to be priced significantly below the median home value to achieve positive cash flow. Given the high median home value and the tight rental market, finding such opportunities would be difficult. Investors focusing on Section 8 properties should consider the financial realities of renting at FMR levels, which may not be sustainable in Prosper, TX. #### Specific Actionable Insights 1. **Target Lower-Income Units**: Investors should focus on acquiring properties that are specifically targeted towards lower-income households. This could include older homes or apartments that are less desirable but still within the FMR range. For instance, a three-bedroom unit renting at $3510 might be more feasible if the property is priced around $275,000 to $300,000, allowing for a reasonable cash flow. 2. **Consider Multi-Family Properties**: Single-family homes in Prosper, TX, are likely to be too expensive for Section 8 tenants. Multi-family properties, such as duplexes or small apartment buildings, might offer better opportunities for positive cash flow. These properties often have lower per-unit values and can be more easily managed within the FMR guidelines. #### Bottom Line For Section 8-focused investors, the ZIP code 75078 (Prosper, TX) is generally not recommended due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **Skip** this ZIP code unless investors can identify very specific, lower-cost opportunities that align with FMR guidelines. If investors are considering entering this market, they must be prepared to manage properties with potentially negative cash flows or seek alternative strategies to ensure profitability.

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.