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 | $1,160 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,200 | $124,403 | 0.96% | C |
| 2BR | $1,410 | $149,897 | 0.94% | C |
| 3BR | $1,780 | $235,767 | 0.75% | D |
| 4BR | $2,260 | $288,879 | 0.78% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 75203 does not favor Section 8 participants. The Fair Market Rent (FMR) set at $1,330 for the fiscal year 2024 falls short of the market rent, which stands at $1,537 according to ZORI (Zillow Observed Rent Index). This means that landlords participating in the Section 8 program would need to accept a rent that is below the current market rate, potentially leading to financial losses.
Acquisition in this area is relatively affordable. With a median home value of $202,713, it's possible to find properties within a budget that can still be profitable despite the lower FMR. However, the lack of data on days on market (DOM) and the low price-cut share of 0.4% suggest that the housing market may be stable, but it could also indicate limited opportunities for acquiring properties at discounted rates.
Tenant demand is robust in ZIP 75203. The population of 15,775 residents, with a significant 62.1% renting their homes, points to a healthy pool of potential tenants. This high renter share ensures that there will likely be consistent interest in rental properties, which is crucial for maintaining occupancy rates.
In conclusion, while the rent math in ZIP 75203 is not favorable for Section 8 landlords due to the disparity between the FMR and market rent, the area offers affordable acquisition opportunities and strong tenant demand. Landlords should carefully consider the financial implications and ensure they can manage properties efficiently to mitigate the risks associated with lower rental income. Despite the challenges, the high number of renters and reasonable property values make this area worth considering for those who can navigate the economic constraints effectively.
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.