Section 8 Fair Market Rent (FMR) for ZIP 75149 - 2027

Investment Score for ZIP 75149

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,380
1 Bedroom	$1,420
2 Bedrooms	$1,670
3 Bedrooms	$2,100
4 Bedrooms	$2,670
5 Bedrooms	$3,097
6 Bedrooms	$3,469
7 Bedrooms	$3,747
8 Bedrooms	$3,934

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,670	$175,622	0.95%	C
3BR	$2,100	$232,909	0.9%	C
4BR	$2,670	$286,315	0.93%	C
5BR	$3,097	$344,568	0.9%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75149 (Mesquite, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 75149 in Mesquite, TX, indicate that the rent for a two-bedroom unit is set at $1770, which represents 30.0% of the median household income of $70,774. This suggests that the FMR is designed to be affordable for those who qualify for Section 8 vouchers based on their income levels. However, it is important to understand how these FMRs compare to actual rents in the area. According to the Zillow median price for a two-bedroom home, the value is $178,527. The price-to-FMR ratio is 8.4x, meaning that the median home price is significantly higher than the FMR for a two-bedroom rental unit. This disparity can create challenges for voucher holders, as landlords may be reluctant to accept Section 8 vouchers due to the lower rent compared to market rates. Additionally, voucher holders must find units where the rent does not exceed the FMR, which could limit their options in a market where rents are generally higher. #### Affordability & Renter Profile With a population of 58,262, approximately 33.2% of residents are renters, indicating a significant portion of the community relies on rental housing. The occupancy rate of 94.4% suggests that the rental market is relatively tight, with most available units being occupied. Given the high occupancy rate and the fact that the FMR for a two-bedroom unit is only $1770, it is likely that many renters are facing affordability challenges. The median household income of $70,774 indicates that the average resident has a moderate income level. However, the FMR for a two-bedroom unit is only 30.0% of this median income, suggesting that the typical renter might struggle to afford a two-bedroom unit without assistance. This tight market and the need for affordable housing make the demand for Section 8 vouchers quite high. #### Investor Angle From an investor perspective, the ZIP code 75149 offers mixed potential for cash flow. The FMR for a two-bedroom unit is $1770, while the Zillow median price for such a unit is $178,527. Given the price-to-FMR ratio of 8.4x, it is clear that the purchase price of a property far exceeds what a landlord would receive in monthly rent under the Section 8 program. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of a 5% annual return on investment for a property valued at $178,527, the monthly mortgage payment would be around $744 (based on a 30-year fixed-rate mortgage at 4%). Adding other typical expenses, such as property taxes ($100), insurance ($50), maintenance ($100), and utilities ($50), brings the total monthly expenses to about $1044. Given the FMR of $1770 for a two-bedroom unit, the net cash flow would be $1770 - $1044 = $726 per month. This indicates that the property would indeed generate positive cash flow. However, the investment grade is low due to the high price-to-FMR ratio, which means the initial investment is very high relative to the monthly rental income. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or studio apartments. For example, the FMR for a one-bedroom unit is $1510, which is still above the typical expense threshold but offers a better balance between purchase price and rental income. 2. **Consider Property Location**: Since the market is tight, properties located in areas with higher demand (such as near schools, public transportation, or employment centers) are more likely to attract tenants willing to pay closer to the FMR. Investors should prioritize locations that offer these amenities. 3. **Negotiate with Landlords**: Due to the high occupancy rate, some landlords might be willing to negotiate on rent prices to ensure their units remain occupied. Investors could leverage this by offering slightly above FMR rents to attract more desirable tenants while still maintaining a positive cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 75149 presents a challenging yet potentially rewarding opportunity. While the high price-to-FMR ratio makes the initial investment cost prohibitive, the positive cash flow generated by properties renting at FMR levels suggests that there is still room for profit. However, given the tight market and the high purchase price relative to rental income, the recommendation is to **Hold**. Investors should wait for market conditions to improve or for property values to decrease before making a significant investment. Alternatively, they could explore smaller units or negotiate with landlords to achieve a better balance between purchase price and rental income. In summary, while the market dynamics support positive cash flow, the high initial investment cost and the tight market make it a cautious choice for Section 8-focused investors.

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.