Section 8 Fair Market Rent (FMR) for ZIP 75165 - 2027

Investment Score for ZIP 75165

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	$1,420
1 Bedroom	$1,460
2 Bedrooms	$1,720
3 Bedrooms	$2,170
4 Bedrooms	$2,750
5 Bedrooms	$3,190
6 Bedrooms	$3,573
7 Bedrooms	$3,859
8 Bedrooms	$4,052

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	$1,720	$209,829	0.82%	C
3BR	$2,170	$320,877	0.68%	D
4BR	$2,750	$410,114	0.67%	D
5BR	$3,190	$510,978	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75165 (Waxahachie, TX) #### Section 8 Voucher Dynamics In ZIP code 75165, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1810 per month. This figure represents 25.1% of the median household income of $86,391, indicating that it is relatively affordable for those who qualify for Section 8 vouchers. However, the actual rent charged by landlords in this area can be significantly higher. The Zillow median price for a two-bedroom home is $210,052, which translates into a monthly rent of approximately $1834 when considering typical rental yields. Given the high price-to-FMR ratio of 9.7x, landlords might be inclined to charge rents well above the FMR, making it challenging for voucher holders to find suitable housing. For instance, a three-bedroom unit has an FMR of $2280, but the actual rent could be much higher, potentially exceeding the voucher amount and requiring tenants to pay additional out-of-pocket expenses. #### Affordability & Renter Profile The population of Waxahachie is 53,513, with 34.0% of residents being renters. This indicates a significant rental market presence. The occupancy rate stands at 94.7%, suggesting that the market is quite tight, with few vacancies available. Given the median household income of $86,391, the majority of residents have a decent financial standing, but the 34.0% who are renters might still struggle to afford housing costs. The high price-to-FMR ratio implies that there is a premium on rentals, which could make it difficult for lower-income individuals to secure housing without substantial additional contributions beyond their voucher amounts. #### Investor Angle From an investor’s perspective, the ZIP code 75165 offers a mixed picture. While the high occupancy rate suggests strong demand, the significant gap between FMR and actual rents means that properties rented at FMR levels will likely generate positive cash flow. For example, a two-bedroom property renting at $1810 would yield a positive cash flow if the mortgage payment and other operating expenses are below this amount. However, the high price-to-FMR ratio of 9.7x indicates that the market is overpriced relative to what the government deems fair, which could lead to challenges in finding tenants willing to pay the higher rents. The investment grade for this ZIP code can be considered moderate. While the strong demand and high occupancy rates are positive indicators, the high price-to-FMR ratio poses a risk. Investors should carefully evaluate the potential for long-term appreciation and consider the impact of any changes in government funding or policy on the rental market. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should look for properties where the rent can be set below the FMR, particularly around $1810 for two-bedroom units. This strategy can help attract Section 8 voucher holders who are looking for affordable housing options. By keeping the rent slightly below the FMR, investors can ensure a steady stream of tenants while maintaining positive cash flow. 2. **Consider Multi-Family Units**: With the FMR for a four-bedroom unit being $2900, multi-family units could be a viable option for investors. These larger units often command higher rents and can accommodate families that might otherwise struggle to find affordable housing. Additionally, the higher rent can offset the increased costs associated with managing larger properties. 3. **Monitor Government Funding and Policy Changes**: Given the reliance on Section 8 vouchers, it is crucial for investors to stay informed about any changes in government funding or policy. Any reduction in voucher amounts or tightening of eligibility criteria could negatively impact the ability of residents to afford housing, leading to potential vacancies and reduced cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 75165 presents a moderately attractive opportunity. The strong demand and high occupancy rates suggest a stable market, but the high price-to-FMR ratio poses a risk. Investors should focus on properties where they can set rents slightly below the FMR to ensure steady tenant occupancy and positive cash flow. Given these factors, the recommendation is to **Hold** investments in this ZIP code, particularly for those already established in the market. New investors should proceed with caution, ensuring they thoroughly understand the dynamics before committing capital.

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.