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 | $1,380 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $191,431 | 0.87% | C |
| 3BR | $2,100 | $247,721 | 0.85% | C |
| 4BR | $2,670 | $280,940 | 0.95% | C |
| 5BR | $3,097 | $310,910 | 1% | C |
U.S. Census Bureau data (2024)
Mesquite, ZIP code 75150, offers a stable suburban environment characterized by mature neighborhoods and convenient access to the broader Dallas-Fort Worth metroplex. This area is largely residential with a mix of mid-century single-family homes and apartment complexes, appealing to tenants seeking affordability without sacrificing urban proximity. The local economy benefits significantly from the presence of major distribution centers and retail hubs, with the Town East Mall area serving as a key commercial anchor and employment source for residents.
From a financial perspective, the math reveals a compelling spread for subsidized housing. The HUD Fair Market Rent (FMR) for a 2-bedroom unit stands at $1,830, while the prevailing market rent (Zillow ZORI) lags significantly at just $1,330. This creates a substantial gap of $500 per month, meaning Section 8 tenants can command premiums well above typical market rates. The median home value is $253,602, but investors should note the median 2BR sale price is a more accessible $194,165, though assets move relatively slowly with a median of 76 days on market.
Demand drivers are robust here, supported by a renter share of 48.6% and a median household income of $65,440. This income level suggests that while many residents can afford standard rents, a significant portion may still qualify for or benefit from housing assistance, particularly as housing costs rise. The area is served by the Mesquite Independent School District, which generally offers solid educational options, adding to the neighborhood's appeal for families seeking long-term stability. Local transit options and proximity to major highways further enhance accessibility for working-class tenants.
The Section 8 verdict for 75150 is heavily weighted toward cash flow. The $500 positive arbitrage between the FMR and market rent is the primary driver, allowing investors to achieve yields that standard leases rarely support. While the 76-day days-on-market metric indicates a slower sales environment, the high renter prevalence and the guaranteed income associated with vouchers mitigate this risk by ensuring consistent occupancy once a unit is secured.
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.