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 | $1,220 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $162,745 | 0.91% | C |
| 3BR | $1,860 | $214,904 | 0.87% | C |
| 4BR | $2,370 | $264,450 | 0.9% | C |
| 5BR | $2,749 | $322,969 | 0.85% | C |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 75180, Balch Springs, TX, reveals that the Fair Market Rent (FMR) set by HUD for the fiscal year 2024 is $1,550. This amount is significantly lower than the current market rent, which stands at $1,941 according to ZORI (Zillow Observed Rent Index). Given this disparity, voucher tenants will only cashflow marginally at best, and likely not at all without premium units that command higher rents.
To further contextualize the rental market, consider the median home value in the area, which is $220,724. The rent-to-price ratio can be calculated by dividing the annual rent ($1,941 * 12 months) by the median home value. This results in an approximate ratio of 11%, indicating that rental income is relatively low compared to the cost of homeownership. This suggests that the buy vs. rent dynamic leans towards renting being less financially advantageous, though it remains a critical option for many residents.
The data shows a median Days on Market (DOM) of N/A, which means there isn't enough recent sales data to determine how long properties typically stay on the market before selling. Additionally, the share of homes making price cuts is listed as 0.3%, a very low figure that could imply strong demand or a stable market, but with limited DOM data, this metric alone doesn't provide a complete picture of the local housing market's liquidity or volatility.
In conclusion, for Section 8 investors in ZIP 75180, the strongest angle is likely stability. Despite the challenging cashflow situation due to the gap between HUD FMR and market rents, the low rate of price cuts and the essential nature of affordable housing suggest that this investment offers consistent returns and minimal risk of vacancy, making it a reliable choice for those seeking a steady stream of income and a predictable market environment.
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.