Location: Henderson County, 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 | $1,040 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $206,207 | 0.65% | D |
| 3BR | $1,720 | $303,667 | 0.57% | F |
| 4BR | $2,060 | $446,554 | 0.46% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 75143, Texas, for Section 8 purposes should follow this decision tree:
1) Does FMR $1300 (zip FY 2024) clear debt service on a $275,999 property?
No. The Fair Market Rent (FMR) of $1300 is insufficient to cover the debt service on a property priced at $275,999. Assuming a typical mortgage rate of around 5%, the annual debt service would be approximately $16,500, or $1,375 per month. This exceeds the FMR of $1300, making it unfeasible to rely solely on Section 8 payments to meet financial obligations.
2) Is market rent $1,275 (Census ACS) above, at, or below FMR?
The market rent of $1,275 is below the FMR of $1300. This indicates that landlords might be able to charge slightly higher rents than the market average when renting to Section 8 tenants, but the difference is minimal and does not compensate for the shortfall in covering the debt service.
3) Are 18.0% renters + 115-day DOM enough demand?
It depends. With 18.0% of the population being renters, there is some demand for rental properties. However, the Days on Market (DOM) of 115 days suggests that it takes a relatively long time for properties to be rented out, indicating moderate competition and potentially lower demand compared to other areas. Given the low market rent and the fact that FMR does not cover debt service, the demand factors alone do not sufficiently justify an investment in this area for Section 8 purposes.
In summary, based on the provided data, a landlord should not buy in ZIP 75143 for Section 8 purposes. The FMR does not cover the debt service on a $275,999 property, and while there is some demand, it is not strong enough to offset the financial risks involved.
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.