Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| 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 |
The economics of Section 8 in ZIP code 75185, located in Dallas County, Texas, revolve around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1680. This figure represents the maximum amount that the Housing Choice Voucher Program will pay for rent in this area.
The SAFMR is calculated based on the average rent in the area and adjusted to ensure it does not exceed 40% of the median income for very low-income families. It's important to note that the local market rent is currently unavailable, but the SAFMR provides a reliable benchmark for understanding the rental landscape in ZIP 75185.
A voucher payment consists of two parts: the tenant contribution and the utility allowance. Tenants are required to pay 30% of their adjusted monthly income toward rent. If the tenant's portion is less than the utility allowance, the difference is added to the voucher payment. Conversely, if the tenant's portion exceeds the utility allowance, the voucher payment covers only the SAFMR minus the tenant's contribution.
Let's walk through an example. Assume a tenant's adjusted monthly income is $1000. They would contribute $300 towards rent ($1000 * 0.3). If the utility allowance is $200, the total voucher payment would be $1680 - $300 = $1380. However, if the tenant's contribution is higher than the utility allowance, say $400, then the voucher payment would be $1680 - $400 = $1280.
In ZIP 75185, landlords can expect the typical reimbursement gap or surplus for a two-bedroom apartment to be around $300-$400 below the SAFMR. This means that if the local market rent were to exceed $1680, landlords would have to absorb the difference, leading to a potential shortfall. On the other hand, if the market rent is below the SAFMR, landlords might see a slight surplus.
To summarize, landlords in ZIP 75185 should anticipate receiving a voucher payment that is close to, but generally slightly below, the $1680 SAFMR for a two-bedroom unit. This economic reality necessitates careful consideration of operating costs and profit margins when deciding whether to participate in the Section 8 program.
Data Sources: FMR data from HUD (2027).
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.