Section 8 Fair Market Rent (FMR) for ZIP 75087 - 2027

Investment Score for ZIP 75087

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	$1,630
1 Bedroom	$1,670
2 Bedrooms	$1,970
3 Bedrooms	$2,480
4 Bedrooms	$3,150
5 Bedrooms	$3,654
6 Bedrooms	$4,092
7 Bedrooms	$4,419
8 Bedrooms	$4,640

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	$1,970	$268,082	0.73%	D
3BR	$2,480	$375,719	0.66%	D
4BR	$3,150	$482,360	0.65%	D
5BR	$3,654	$588,568	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75087 (Rockwall, TX) #### Section 8 Voucher Dynamics The Federal Market Rent (FMR) for ZIP code 75087 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1720 - 1BR: $1790 - 2BR: $2100 - 3BR: $2640 - 4BR: $3360 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, it is important to note that these rates are significantly lower than the actual rental market rates in Rockwall, TX. For instance, the Zillow median price for a 2BR property is $266,241, which translates to a monthly mortgage payment of approximately $1,200 assuming a 4.5% interest rate and a 20-year amortization period. This means that even if a landlord were to rent out a 2BR property at the FMR of $2100, they would still be operating below the market rate. Given the high median household income of $129,484, the FMR for a 2BR unit represents only 19.5% of the median income, indicating that the FMR is relatively affordable for the average resident but may be challenging for those relying solely on vouchers. The constraints for voucher holders include finding landlords willing to accept the FMR, which is often below what the market demands. #### Affordability & Renter Profile ZIP code 75087 has a population of 44,326, with 18.8% being renters. The occupancy rate stands at 93.9%, suggesting a tight rental market where demand is likely higher than supply. Given the high median household income, the typical renter profile is likely to be individuals or families who have stable employment and higher-than-average earnings. However, the 18.8% of renters may also include some low-income households who rely on assistance such as Section 8 vouchers. Despite the high income levels, the FMRs are still quite low compared to the actual rental market rates. The price-to-FMR ratio for a 2BR unit is 10.6x, meaning that the median rental price is about 10.6 times the FMR. This indicates that the rental market is very expensive relative to the FMR, making it difficult for voucher holders to find suitable housing. #### Investor Angle From an investor perspective, renting out properties at the FMR would likely result in negative cash flow due to the high cost of ownership in Rockwall, TX. The Zillow median price for a 2BR property is $266,241, and assuming a conservative estimate of $1,200 per month in mortgage payments, plus additional expenses such as maintenance, insurance, and property taxes, the total cost of ownership could easily exceed the FMR. For example, if we assume an annual property tax rate of 1.5% and a monthly insurance premium of $100, the total monthly costs would be: - Mortgage: $1,200 - Property Tax: $266,241 * 1.5% / 12 = $333 - Insurance: $100 - Maintenance: $100 (estimated) Total monthly cost: $1,733 This exceeds the FMR of $2100 for a 2BR unit, leaving little room for profit. Therefore, the investment grade for this ZIP code is low for Section 8-focused investors, as the returns are unlikely to cover the costs of ownership. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, investors should consider targeting higher-income renters rather than relying on Section 8 vouchers. This will likely result in better cash flow and a more sustainable business model. 2. **Focus on Smaller Units**: While the FMR for larger units (3BR and 4BR) is higher, the market demand for smaller units (0BR and 1BR) might be more favorable. These units are generally easier to manage and maintain, and the FMRs are closer to the actual rental market rates, reducing the gap between cost and revenue. 3. **Consider Mixed-Income Developments**: Developments that cater to both voucher holders and higher-income renters can help balance the financial risks. By offering a mix of units at different price points, investors can ensure a steady stream of income while still providing affordable housing options. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** ZIP code 75087. The high cost of ownership and the tight rental market make it challenging to achieve positive cash flow when renting at the FMR. Investors looking to enter this market should focus on other areas with more favorable conditions for Section 8 properties. Alternatively, they could consider diversifying their portfolio to include a mix of income levels and property types to mitigate risk.

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.