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 | $1,840 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $195,841 | 0.97% | C |
| 2BR | $2,230 | $451,335 | 0.49% | F |
| 3BR | $2,810 | $809,399 | 0.35% | F |
| 4BR | $3,570 | $1,193,353 | 0.3% | F |
| 5BR | $4,141 | $1,441,972 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 75206 in Dallas, TX, stands out due to its unique demographic and economic characteristics. With a population of 38,909 residents, it has a high rental rate of 73.0%, indicating a strong demand for apartments and other rental properties. The median income in this area is $91,023, which is above the national average, suggesting a relatively affluent community. However, the median home value is significantly lower at $602,585, making homeownership less prevalent compared to other areas in Dallas.
In terms of voucher economics, the Fair Market Rent (FMR) for ZIP 75206 is set at $2,170 for fiscal year 2024. This figure is notably higher than the market rent, which is estimated at $1,926 based on the ZORI (Zillow Observed Rent Index). Landlords and small-portfolio investors should take note that the higher FMR could provide an opportunity to secure steady rental income through Section 8 vouchers, even if it slightly exceeds the current market rates. It's important to ensure compliance with HUD guidelines to avoid any penalties or disqualification from the program.
The data signature for ZIP 75206 reads as stable. The high percentage of renters and relatively low median home value indicate a consistent demand for rental properties. Additionally, the higher median income suggests that residents have the financial means to support their living expenses, including rental payments. For landlords and investors, this stability offers a reliable investment environment, particularly when considering the benefits of participating in the Section 8 program.
To summarize, ZIP 75206 presents a solid opportunity for those interested in the Section 8 program. Its demographics and economic indicators point towards a stable and potentially lucrative market for rental properties. Landlords and investors can leverage the higher FMR to secure long-term tenants while maintaining financial stability in their portfolios.
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.