Section 8 Fair Market Rent (FMR) for ZIP 75115 - 2027

Investment Score for ZIP 75115

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	$1,480
1 Bedroom	$1,520
2 Bedrooms	$1,790
3 Bedrooms	$2,250
4 Bedrooms	$2,860
5 Bedrooms	$3,318
6 Bedrooms	$3,716
7 Bedrooms	$4,013
8 Bedrooms	$4,214

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	$1,790	$200,269	0.89%	C
3BR	$2,250	$283,442	0.79%	D
4BR	$2,860	$361,762	0.79%	D
5BR	$3,318	$452,704	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75115 (DeSoto, TX) #### Section 8 Voucher Dynamics In DeSoto, TX (ZIP code 75115), the Fair Market Rent (FMR) for 2026 is set at $1900 for two-bedroom units. This FMR represents 27.5% of the median household income in the area, which is $82,782. However, the actual rent for two-bedroom units, based on Zillow's median price, is significantly higher at $200,753. The price-to-FMR ratio for a two-bedroom unit is approximately 8.8x, indicating that the actual rental prices are much higher than the FMR. This disparity means that tenants using Section 8 vouchers will face significant constraints in finding affordable housing. They would need to find landlords willing to accept the lower FMR rates, which can be challenging given the high actual rental prices. Additionally, the voucher amount might not cover all costs associated with renting, such as utilities, leading to potential financial strain for voucher recipients. #### Affordability & Renter Profile The population of DeSoto, TX is 56,211, with 30.4% of residents being renters. This indicates a substantial rental market presence, but the high occupancy rate of 95.3% suggests that there is limited availability of rental properties. Given the median household income of $82,782, the majority of renters likely fall into the middle-income bracket, with some potentially qualifying for assistance programs like Section 8. The tight market conditions, coupled with the high actual rental prices, imply that it is a competitive environment for both tenants and landlords. For those relying solely on Section 8 vouchers, finding suitable housing could be particularly difficult due to the mismatch between FMR and actual rental costs. This scenario also suggests that the rental market is well-supplied but highly priced, making it less accessible for low-income individuals. #### Investor Angle From an investor's perspective, the ZIP code 75115 offers mixed opportunities. The FMR for a two-bedroom unit is $1900, which is considerably lower than the actual median rental price of $200,753. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely struggle to achieve positive cash flow, especially considering the high purchase price. To determine the investment grade, we must consider factors such as the cost of acquisition, ongoing expenses, and potential rental income. With the median home price being so high relative to the FMR, the likelihood of achieving positive cash flow is slim unless the investor can secure a property below the median price or manage to reduce operating costs significantly. Given the high price-to-FMR ratio, it is unlikely that the ZIP code would be considered a strong investment opportunity for those focusing exclusively on Section 8 tenants. The primary constraint is the significant gap between the FMR and the actual rental prices, which makes it challenging to generate sufficient rental income to cover mortgage payments and other expenses. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For instance, a two-bedroom unit priced at around $1900 would be more attractive to Section 8 tenants and potentially allow for better cash flow management. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, multi-family properties might offer a better balance. For example, a three-bedroom unit has an FMR of $2390, which is still far below the median home price but provides a slightly higher rental income potential. 3. **Utilize Incentives and Programs**: Investors might benefit from exploring local incentives and programs designed to support affordable housing. These could include tax breaks, grants, or subsidies that help offset the costs of renting at FMR levels. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 75115 is to **Skip** this market. The high price-to-FMR ratio and the limited availability of rental properties make it challenging to achieve positive cash flow when renting at FMR levels. While there is a significant rental market presence, the actual rental prices are too high for most Section 8 voucher holders, reducing the pool of potential tenants. Therefore, investing in this ZIP code with a focus on Section 8 tenants would likely result in suboptimal returns and financial challenges.

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.