Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
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 | $1,860 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $3,600 |
| 5 Bedrooms | $4,176 |
| 6 Bedrooms | $4,677 |
| 7 Bedrooms | $5,051 |
| 8 Bedrooms | $5,304 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $282,322 | 0.8% | D |
| 3BR | $2,830 | $327,744 | 0.86% | C |
| 4BR | $3,600 | $410,818 | 0.88% | C |
| 5BR | $4,176 | $500,269 | 0.83% | C |
U.S. Census Bureau data (2024)
ZIP code 75089 is part of Rowlett, TX, a suburban area characterized by a relatively affluent community. With a total population of 35,619, the neighborhood has a modest rental segment, where 24.1% of residents are renters. The median household income in this area stands at a robust $118,318, indicating a high standard of living. The median home value is also impressive, sitting at $379,436. This suggests that homeownership is prevalent and that the homes in the area are of considerable value.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP 75089 as of fiscal year 2024 is set at $2,320. In contrast, the market rent, measured by Zillow's Observed Rent Index (ZORI), is $1,953. This discrepancy between the FMR and the actual market rent points to a potential opportunity for Section 8 landlords. Given that the FMR exceeds the market rent, properties in ZIP 75089 can be rented out under the Section 8 program at rates higher than the local market average, which could be advantageous for landlords seeking stable income sources.
The question then arises: Is ZIP 75089 better suited for a hands-off voucher operator or a hands-on value-add buyer? Considering the affluent nature of the neighborhood and the relatively high median home value, a hands-on approach might yield better returns. Value-add buyers who are willing to invest in property improvements could command even higher rents, potentially aligning with the FMR levels. However, the hands-off operator strategy remains viable due to the stability provided by the Section 8 program, ensuring steady cash flow without the need for active management or significant capital investment.
In summary, ZIP 75089 offers a mix of opportunities for both hands-off and hands-on Section 8 investors. Its high median income and home values create a solid foundation for rental investments, while the gap between FMR and market rent presents a chance for strategic pricing and potential growth through property enhancement.
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.