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 | $1,530 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $186,019 | 0.99% | C |
| 3BR | $2,330 | $265,510 | 0.88% | C |
| 4BR | $2,960 | $304,348 | 0.97% | C |
| 5BR | $3,434 | $351,780 | 0.98% | C |
U.S. Census Bureau data (2024)
The ZIP code 75146 in Lancaster, TX, is characterized by a significant rental population, with 43.2% of residents being renters. This makes it a prime location for landlords and small-portfolio investors looking to tap into a robust tenant pool. The median household income stands at $68,071, which provides a useful benchmark for assessing the affordability of housing.
The market rent in this area is $2,304 per month, representing approximately 34% of the median household income when calculated annually. In contrast, the Fair Market Rent (FMR) for FY 2024 is set at $1,760, indicating that there is a notable gap between market rents and what might be considered fair or subsidized rates. This suggests a strong demand for Section 8 vouchers among tenants, given the higher market rents.
To further illustrate the financial impact on residents, consider that a household earning the median income would spend about one-third of their monthly earnings on market rent. This is a substantial portion of income dedicated to housing, making subsidized options like Section 8 highly attractive to many potential tenants.
A landlord operating in ZIP 75146 should anticipate a tenant base that heavily relies on government assistance programs such as Section 8 to secure housing. These tenants will likely have a fixed budget, often limited to the FMR of $1,760, and will be seeking affordable units within this price range. It's important for landlords to understand the requirements and processes associated with accepting Section 8 tenants, including the need to maintain properties to certain standards and potentially navigating administrative hurdles.
In conclusion, ZIP 75146 presents an opportunity for landlords who can offer units priced at or near the FMR. The high percentage of renters and the significant disparity between market rent and FMR indicate a strong desire for affordable housing solutions, making it a viable market for those willing to participate in the Section 8 program.
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.