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 | $2,240 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,410 | $437,624 | 0.78% | D |
| 4BR | $4,340 | $553,533 | 0.78% | D |
| 5BR | $5,034 | $673,916 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 75094 presents an interesting scenario for both renters and landlords. The median household income stands at $171,476, which places residents in a relatively high-income bracket. However, the market rate for rent is $2,794, according to the latest Census ACS data. This figure represents a significant portion of the median income, making it challenging for even middle-upper class households to comfortably afford the average rent without financial strain.
Comparatively, the voucher payment standard set at Fair Market Rent (FMR) of $2,640 for the fiscal year 2024 offers a slightly lower but still substantial rental amount. While this is less than the market rate, it still requires a considerable percentage of the median income to cover, especially when factoring in other living expenses.
The ZIP code has a population of 24,200, with only 7.2% of households being renters. This low percentage suggests a limited pool of potential tenants, leading to increased competition among landlords for available rental properties. In such a competitive environment, landlords must carefully consider their tenant selection strategies to ensure occupancy and maximize profitability.
Given these conditions, landlords should weigh the benefits of accepting Section 8 vouchers against the advantages of renting to cash-paying tenants. Vouchers guarantee a steady stream of income, albeit at a slightly lower rate than the market. Cash-paying tenants might offer higher rents but come with the risk of vacancy and the challenge of finding qualified applicants in a tight rental market.
The takeaway for landlords is that while the market rate is higher, the competition for tenants is fierce due to the low percentage of renters and the high cost of living relative to income. Accepting vouchers can be a strategic move to secure stable occupancy, particularly in a market where the affordability gap is significant. However, landlords should also explore ways to attract cash-paying tenants by offering superior amenities and maintenance to justify the premium over voucher rates.
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.