Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,750 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,140 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
U.S. Census Bureau data (2024)
A decision tree for considering whether to invest in ZIP 75207 for Section 8 properties involves several key factors.
1) Does the Fair Market Rent (FMR) of $2,350 cover the debt service on a property?
If the FMR does not exceed the debt service, the answer is a clear No. Landlords must ensure that the rental income is sufficient to cover all mortgage payments and other costs associated with property ownership. Since the FMR is $2,350, if the debt service exceeds this amount, purchasing in this area would not be advisable.
2) How does the Zillow Observed Rent Index (ZORI) of $1,539 compare to the FMR?
The ZORI is significantly below the FMR, indicating that market rents are lower than what Section 8 vouchers can cover. This suggests that landlords could potentially charge the higher FMR rate without fear of being undercut by market rents. Therefore, if the ZORI is below the FMR, the answer is Yes, there is an opportunity to leverage the higher voucher rates.
3) Is the demand high enough with 99.2% renters and N/A-day Days on Market (DOM)?
High demand is indicated by a high percentage of renters and low DOM, suggesting quick turnover. With 99.2% of residents being renters, demand appears strong. However, the lack of DOM data means we cannot fully assess how quickly units are rented. Without this information, the answer is It Depends. Landlords need to investigate further into local rental vacancy rates and the speed at which properties are typically leased to make a well-informed decision.
To summarize, the decision hinges on whether the FMR covers debt service and whether market rents are below the FMR. The third factor, demand, requires additional investigation due to incomplete DOM data. If the first two criteria are met and demand is confirmed to be robust, then investing in ZIP 75207 for Section 8 properties would be favorable.
Data Sources: FMR data from HUD (2027). 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.