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 | $1,100 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,680 | $285,542 | 0.59% | F |
| 4BR | $2,140 | $320,105 | 0.67% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,510 for ZIP 75125 in fiscal year 2024 is sufficient to cover the mortgage on a home priced at $293,145. However, the average home price in ZIP 75125 is $489,424, indicating that the median-priced home is significantly higher than the one in question. Given that the typical mortgage payment on a home costing $293,145 would likely be lower, it's reasonable to conclude that the FMR could indeed cover such a mortgage.
The investor might also doubt if the 16.7% renter demand is substantial enough to ensure steady occupancy. According to recent data, the average rent for a 3-bedroom home in ZIP 75125 is approximately $2,240. This suggests that while the percentage of renters is relatively low, the actual number of potential tenants is adequate, especially considering the higher average rent compared to the FMR.
Another concern could be whether housing vouchers will keep pace with the market rents, currently averaging around $1,157. While the specific voucher amounts are not provided in the data, it's worth noting that the average rent for a 3-bedroom home is $2,240, which is notably higher. This implies that vouchers may not fully cover the market rent, but they do provide a significant subsidy that could still make the property attractive to voucher holders.
In summary, while the data does not definitively address every aspect of these concerns, it suggests that the FMR is likely adequate for covering a mortgage on a $293,145 home, there is sufficient tenant demand, and although vouchers may not fully cover market rents, they still offer a substantial financial benefit. For a complete analysis, further investigation into specific mortgage rates and voucher amounts is recommended.
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.