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 | $2,030 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,100 |
| 4 Bedrooms | $3,940 |
| 5 Bedrooms | $4,570 |
| 6 Bedrooms | $5,118 |
| 7 Bedrooms | $5,527 |
| 8 Bedrooms | $5,803 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,460 | $229,514 | 1.07% | B |
| 3BR | $3,100 | $283,798 | 1.09% | B |
| 4BR | $3,940 | $341,044 | 1.16% | B |
| 5BR | $4,570 | $397,627 | 1.15% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 75181, located in Mesquite, TX, Dallas County, revolve around the SAFMR (Small Area Fair Market Rent) and local market conditions. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2,510. This figure represents the maximum amount that the Section 8 program will reimburse landlords for this specific ZIP code. In comparison, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $2,654.
A landlord participating in the Section 8 program should understand that the total reimbursement includes both the tenant's portion and utility allowances. Here’s a breakdown:
To illustrate, if a landlord charges $2,654 for a two-bedroom unit, the Section 8 program would cover up to $2,510 of this amount. The remaining $144 would need to be covered by the tenant. However, the tenant's contribution is capped at 30% of their adjusted income, which might not always meet the shortfall. Therefore, the landlord must ensure that the tenant's portion plus the utility allowance does not exceed the $2,510 SAFMR limit.
In practice, this means that for a two-bedroom apartment priced at $2,654, the landlord would receive $2,510 from the Section 8 program, leaving a reimbursement gap of $144. This gap is the difference between the local market rent and the SAFMR, and it highlights the financial dynamics landlords face when participating in the program. Landlords must balance their rental pricing to ensure compliance with SAFMR while also considering the local market conditions and the potential reimbursement gap.
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.