Section 8 Fair Market Rent (FMR) for ZIP 75204 - 2027

Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area

Investment Score for ZIP 75204

Monthly Rent (2BR)

$2,550

Median Price (2BR)

$484,957

1% Rule

0.53%

Annual Yield

6.31%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,100
1 Bedroom	$2,170
2 Bedrooms	$2,550
3 Bedrooms	$3,210
4 Bedrooms	$4,080
5 Bedrooms	$4,733
6 Bedrooms	$5,301
7 Bedrooms	$5,725
8 Bedrooms	$6,011

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,170	$248,278	0.87%	C
2BR	$2,550	$484,957	0.53%	F
3BR	$3,210	$647,548	0.5%	F
4BR	$4,080	$835,282	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

34,666

Median Household Income

$92,253

Housing Units

24,499

Renter Percentage

81.4%

Occupancy Rate

87.9%

Renter Occupied

17,528

The ZIP code 75204, located in Dallas, Texas, is a vibrant urban area characterized by a mix of residential and commercial developments. The neighborhood offers easy access to downtown Dallas and various amenities, making it attractive for both renters and homeowners. However, understanding the rental market dynamics is crucial for landlords and small-portfolio investors looking to capitalize on opportunities in this region.

The Fair Market Rent (FMR) for ZIP 75204 in fiscal year 2024 is set at $2,580, indicating the government's benchmark for affordable housing standards.
The market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $1,969, reflecting the actual rental rates paid by tenants in the area.
The median home value in ZIP 75204 is $502,043, which provides a baseline for property values but does not directly impact rental decisions.
Renters make up 81.4% of the population in this ZIP code, suggesting a strong demand for rental properties over homeownership.
The Days on Market (DOM) for rental listings is 85 days, which is relatively high and could indicate challenges in quickly leasing out properties.
The median household income in ZIP 75204 is $92,253, providing insight into the financial capacity of potential tenants.

In summary, ZIP 75204 presents a robust rental market with a significant portion of residents preferring to rent rather than buy. Despite the high median income, the Days on Market suggests that competition among rental properties is fierce, and landlords must be prepared to offer competitive pricing close to the ZORI rate. The discrepancy between the ZORI and FMR also highlights the need for landlords to balance affordability with profitability, given the government's standards for the area. For small-portfolio investors, this ZIP code offers potential, but they should be mindful of the market conditions and adjust their strategies accordingly.

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.