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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,300 | $258,441 | 0.89% | C |
| 2BR | $2,710 | $643,766 | 0.42% | F |
| 3BR | $3,410 | $1,664,787 | 0.2% | F |
| 4BR | $4,340 | $2,737,623 | 0.16% | F |
| 5BR | $5,034 | $4,314,141 | 0.12% | F |
U.S. Census Bureau data (2024)
The ZIP code 75205, located in Highland Park, TX, within the Dallas, TX HUD Metro FMR Area, presents a unique opportunity for Section 8 real-estate analysts and investors. This area is best suited as an appreciation play. Here's why:
The Fair Market Rent (FMR) for ZIP 75205 in fiscal year 2024 is set at $2,510, while the actual market rent for a median-priced home is $2,998. This indicates that there is a positive spread of $488 between the FMR and the market rent. However, the median home value stands at $2,064,482, which is significantly higher than the typical rental rates, suggesting a premium real estate market.
The ZIP code 75205 experiences a low price-cut share of 0.2%, indicating that homes here rarely go on sale, and when they do, they don't stay on the market long. The Days on Market (DOM) statistic of 20 days further supports this, showing that properties in this area sell quickly once listed. These factors point to a robust and stable local real estate market, with strong demand for both rentals and purchases.
Additionally, the median household income in ZIP 75205 is $181,631, which is considerably high. This level of income suggests that residents can afford higher rents and property values, making it less likely that they will rely solely on Section 8 vouchers. As a result, the area has a relatively low renter share of 44.8%, which is balanced and does not indicate a heavy reliance on subsidized housing.
In conclusion, ZIP 75205 is best categorized as an appreciation play due to its quick sales, low price-cut share, and high median income. These characteristics make it a solid investment for those looking to capitalize on the growing value of real estate in this affluent Dallas neighborhood.
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.