Section 8 Fair Market Rent (FMR) for ZIP 75123 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 75123, located in Dallas County, Texas, involve understanding the Subsidized Area Fair Market Rent (SAFMR) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $1680. This figure represents the maximum amount that the housing authority will pay to landlords on behalf of tenants participating in the Section 8 program.

To clarify, the SAFMR is the rate established for this particular ZIP code, meaning it's tailored to reflect the rental costs within 75123 rather than being a uniform rate across the entire county or metropolitan area. However, it's important to note that the local market rent for the area is currently unavailable, which makes direct comparisons challenging. But using the SAFMR as a benchmark can still provide valuable insights into the financial dynamics of renting to Section 8 participants.

A voucher payment to landlords consists of the difference between the SAFMR and the tenant's portion of the rent, plus any utility allowances. Typically, the tenant is expected to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income for a household in this scenario, the tenant might contribute approximately $504 per month, based on the $1680 SAFMR. This leaves the housing authority responsible for covering the remaining 70%, which would be around $1176 in this case.

In addition to the rent subsidy, the housing authority also provides utility allowances to help cover electricity, water, and other household services. These allowances vary but are generally capped at a certain amount per household size. For a two-bedroom unit, the utility allowance might be around $300, though this can fluctuate based on individual circumstances and the housing authority's policies.

Combining the rent subsidy and the utility allowance, landlords in ZIP 75123 can expect a total reimbursement of roughly $1476 per month for a two-bedroom apartment under the Section 8 program. Given the SAFMR of $1680, this leaves a reimbursement gap of $204. Landlords must consider this gap when deciding whether to participate in the program, as it represents the shortfall between the actual SAFMR and the total amount reimbursed by the housing authority.

In summary, while the Section 8 program aims to make housing affordable for low-income families, it often leaves landlords with a small reimbursement gap. In ZIP 75123, this gap amounts to $204 per month for a two-bedroom apartment, assuming the tenant contributes 30% of their adjusted income and receives a standard utility allowance. This economic reality should guide landlords in their decision-making process regarding participation in the Section 8 program.

Data Sources: FMR data from HUD (2027).

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.