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 | $1,420 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,720 | $168,706 | 1.02% | B |
| 3BR | $2,160 | $237,605 | 0.91% | C |
| 4BR | $2,760 | $284,349 | 0.97% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1710 for ZIP 75141 (Hutchins, TX) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $248,411. According to recent data, the median home price in 75141 has risen to $343K, indicating a growing market. However, the FMR figure alone does not guarantee mortgage coverage; it depends on the mortgage rate and terms.
The investor could also be concerned about the renter demand at 50.3%. While this percentage might seem low, it suggests that half of the households in the area are renters, providing a significant pool of potential tenants. Moreover, the median sale price per square foot has increased by 48.4% since last year, reflecting a robust interest in the local real estate market.
A final objection might be whether Section 8 vouchers will keep pace with the market rent of $1,396. The FMR of $1710 exceeds the current market rent, implying that voucher holders could potentially afford market-rate rents. However, the effectiveness of vouchers largely depends on the local Section 8 program's funding and efficiency.
To summarize:
Note: Specific mortgage rates and the exact number of units rented under Section 8 were not provided in the data. These factors would influence the overall financial viability of investing in ZIP 75141.
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.