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 | $1,920 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,730 |
| 5 Bedrooms | $4,327 |
| 6 Bedrooms | $4,846 |
| 7 Bedrooms | $5,234 |
| 8 Bedrooms | $5,496 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,980 | $237,676 | 0.83% | C |
| 2BR | $2,330 | $370,060 | 0.63% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 75202, part of the Dallas, TX HUD Metro FMR Area, does not work in favor of Section 8 participation. The Fair Market Rent (FMR) set at $2280 for the fiscal year 2024 is lower than the market rent, which stands at $2,460 (ZORI). This means that landlords who participate in the Section 8 program will be receiving less rent compared to what they could get on the open market.
Acquisition in this area is relatively affordable. The median home value is $276,602, indicating that homes are priced within a range that allows for reasonable profit margins upon resale. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) suggest that the housing market is stable and competitive, which may limit the number of distressed properties available for acquisition at discounted rates.
Tenant demand is strong in ZIP 75202. With a population of 2,892 and a renter share of 75.8%, there is a significant pool of potential tenants. This high percentage of renters indicates that many residents are likely seeking affordable housing options, making it a viable market for Section 8 rentals.
In summary, while the strong tenant demand presents an opportunity for rental income, the disparity between the FMR and market rent makes Section 8 participation less attractive for landlords. The affordability of home acquisition is balanced by a stable housing market, offering limited opportunities for significant discounts. Landlords should carefully weigh these factors before deciding to enter into Section 8 contracts in this area.
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.