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 | $1,370 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $201,549 | 0.82% | C |
| 3BR | $2,090 | $264,736 | 0.79% | D |
| 4BR | $2,660 | $318,598 | 0.83% | C |
| 5BR | $3,086 | $411,551 | 0.75% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,670 for ZIP 75116 (Duncanville, TX) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $273,600. To evaluate this, let's consider the typical mortgage rates in Duncanville. According to recent data, mortgage rates range between 4.5% and 5.5%. Assuming a 30-year fixed-rate mortgage and a 20% down payment, the monthly principal and interest payment on a $273,600 home would be approximately $1,200 to $1,350, depending on the exact rate. Therefore, the FMR of $1,670 should comfortably cover the mortgage payment.
The investor might also wonder if there is sufficient renter demand in Duncanville, given that only 39.3% of housing units are renter-occupied. However, the median rent in ZIP 75116 is around $1,057, indicating that there is indeed a substantial number of renters who can afford and prefer renting over buying. Additionally, the rental vacancy rate stands at 6.3%, which suggests a healthy balance between supply and demand.
Another concern could be whether the Section 8 voucher program will keep pace with the market rents of $1,241. While the voucher program aims to provide affordable housing, it is not always aligned with the market rents. In Duncanville, the average rental price is $1,900, which is higher than the FMR and market rent figures. This discrepancy indicates that landlords receiving Section 8 vouchers may face challenges in covering their expenses, especially if they own homes in higher-cost areas.
To conclude, while the FMR of $1,670 should cover the mortgage payments on a home valued at $273,600, the renter demand at 39.3% appears adequate. However, the Section 8 voucher program may struggle to keep up with market rents of $1,241, particularly in light of the higher average rental prices in the area. Landlords must carefully assess these factors when considering investment in ZIP 75116.
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.