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 | $2,240 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,300 | $422,595 | 0.54% | F |
| 2BR | $2,710 | $1,046,025 | 0.26% | F |
| 3BR | $3,410 | $1,176,907 | 0.29% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP 75201 (Dallas, TX) for Section 8 investment, follow this decision tree:
1) Does FMR $2640 (zip FY 2024) clear debt service on a $982,096 property?
No. The Fair Market Rent (FMR) of $2640 per month is insufficient to cover the debt service on a property valued at $982,096. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, the monthly debt service would likely exceed $2640, making it unprofitable under Section 8 guidelines without additional subsidies or cost reductions.
2) Is market rent $2,181 (ZORI) above, at, or below FMR?
Below FMR. The Zillow Observed Rent Index (ZORI) of $2,181 is below the FMR of $2640. This indicates that the market rent is lower than what the government deems fair for the area, which could be advantageous if you're seeking to attract Section 8 tenants who are looking for affordable housing options.
3) Are 89.4% renters + N/A-day DOM enough demand?
It depends. With 89.4% of the population being renters, there is a high demand for rental properties. However, the Days on Market (DOM) being listed as N/A suggests incomplete data, possibly due to a low turnover rate or other factors affecting the availability of rental listings. Despite this uncertainty, the high percentage of renters implies strong demand, but profitability will depend on your ability to manage costs and find eligible Section 8 tenants willing to pay the ZORI rate of $2,181 per month.
In conclusion, ZIP 75201 presents a mixed picture for Section 8 investment. The market rent being below the FMR could be beneficial for attracting tenants, but the high percentage of renters does not guarantee profitability if the FMR does not cover your debt service costs. Careful financial planning and understanding of local market dynamics are essential before proceeding with any investment decision.
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.