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 | $1,230 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $177,701 | 0.84% | C |
| 3BR | $1,880 | $304,340 | 0.62% | D |
| 4BR | $2,380 | $400,854 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 75142, located in Kaufman, TX, represents a moderate tenant pool for Section 8 housing. With a population of 22,822, it has a rental rate of 24.2%, indicating that nearly one-quarter of residents are renters. The median household income stands at $80,028, which is relatively high compared to the national average. However, the market rent for the area is $1,367, which consumes approximately 17.1% of the median household income. This calculation is derived from dividing the market rent by the median income and multiplying by 100.
When comparing the market rent to the Fair Market Rent (FMR) of $1,460 for FY 2024, we see that the market rent is slightly below the FMR, suggesting that the rental prices are somewhat competitive. This could be an advantage for landlords who want to attract tenants without having to undercut their budgets significantly.
In terms of voucher utilization, the scarcity of vouchers in a predominantly homeowner-dominated area like Kaufman, TX, means that landlords might find a limited number of potential tenants using Section 8 vouchers. However, given the rental rate of 24.2%, there is still a notable demand for rental properties, especially those that offer affordable rates.
The expected tenant profile in this ZIP code would include individuals and families who are seeking affordable housing options but are not heavily reliant on Section 8 vouchers. Landlords can anticipate a mix of tenants, including those who can afford market rates and some who might use vouchers. Given the median income, tenants are likely to have stable employment and a good credit history, making them reliable occupants.
To summarize, while ZIP 75142 is not a renter-heavy area with deep voucher demand, it still offers a viable market for landlords and small-portfolio investors. The combination of a moderate rental rate and a slightly lower market rent compared to the FMR makes it attractive for both voucher holders and other low-income renters.
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.