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 | $1,280 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $182,984 | 0.85% | C |
| 3BR | $1,950 | $251,294 | 0.78% | D |
| 4BR | $2,480 | $306,061 | 0.81% | C |
| 5BR | $2,877 | $347,684 | 0.83% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 75159 in Seagoville, TX, on the axes of yield and stability reveals it as a moderate cash flow opportunity with some considerations regarding stability.
On the yield axis, the Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,600, while the market rent stands at $2,140. This indicates that there is potential for above-average rental income compared to the FMR, suggesting a decent yield for investors. However, the median home value of $281,026 implies that the initial investment required for property acquisition is relatively high, which could temper the overall yield when considering the capital outlay.
Regarding stability, the ZIP code has a relatively low percentage of renters at 19.0%. This suggests that the majority of residents are homeowners, which can influence the demand for rental properties. The lack of available data on the average number of days on market (DOM) makes it challenging to assess how quickly properties are rented, but it is a significant factor in determining market stability. Additionally, the median household income of $72,897 provides insight into the financial capacity of the local population to sustain rental payments, though this figure alone does not guarantee consistent tenant behavior.
Given these factors, ZIP 75159 is best classified as a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The market rent of $2,140 exceeds the FMR, providing a solid basis for rental income. However, the lower renter percentage and the absence of DOM data indicate a less volatile market with potentially slower turnover rates, favoring long-term investments over quick flips.
To summarize, the primary drivers for this classification are the higher-than-FMR market rent and the median income level that supports rental affordability. These figures suggest a stable environment where investors can expect reliable cash flows without the high risks associated with rapid property flipping.
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.