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 | $1,820 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,780 | $299,884 | 0.93% | C |
| 4BR | $3,540 | $365,489 | 0.97% | C |
| 5BR | $4,106 | $423,773 | 0.97% | C |
U.S. Census Bureau data (2024)
The ZIP code 75166 is situated in a high-end residential area of Plano, Texas, characterized by its affluent demographic and low rental rate compared to homeownership. With a total population of 6,989, only 9.1% of residents are renters, indicating a strong preference for owning property over renting. The median household income stands at an impressive $132,101, which is significantly above the national average, reflecting the wealth of the community. Correspondingly, the median home value in ZIP 75166 is $353,469, showcasing the expensive nature of the housing market in this area.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 75166 for fiscal year 2024 is set at $2,440, closely matching the market rent as indicated by the Zillow Observed Rent Index (ZORI), which is $2,443. This parity between FMR and market rent suggests a stable rental environment where properties are priced in line with HUD guidelines, making it attractive for landlords who wish to participate in the Section 8 program without the risk of significant rent fluctuations.
Given these economic conditions, ZIP 75166 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the rental market and the alignment of FMR with market rates reduce the complexity of managing properties under the Section 8 program. On the other hand, hands-on value-add buyers could leverage the high median income and home values to renovate and reposition rental units, potentially commanding higher rents outside the voucher program. However, the low percentage of renters might present a challenge for attracting tenants, necessitating a targeted marketing approach to appeal to those eligible for Section 8 vouchers.
In conclusion, while the high-end nature of ZIP 75166 presents opportunities for both types of investors, the limited rental market suggests a need for strategic planning, especially for hands-on investors aiming to maximize returns through value addition.
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.