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 | $1,230 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $152,591 | 0.83% | C |
| 2BR | $1,490 | $176,293 | 0.85% | C |
| 3BR | $1,880 | $261,842 | 0.72% | D |
| 4BR | $2,380 | $349,501 | 0.68% | D |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 75221 (Dallas, TX) reveals a nuanced balance between buyer and seller power, with implications for both short-term and long-term investment strategies. The median home value stands at $246,102, a figure that has seen minimal downward pressure, evidenced by only 0.3% of listings being reduced. This indicates a relatively stable market where sellers maintain a significant degree of pricing control. The median days on market (DOM) of 48 days suggests that homes are moving quickly once listed, further reinforcing the idea that the market is tight and buyers are eager.
On the rental side, the Federal Market Rent (FMR) for ZIP 75221 in fiscal year 2024 is projected to be $1,370, while the current market rent, as measured by ZORI, is $1,607. This gap signals a potential shift towards rental markets becoming more attractive relative to homeownership, particularly as the cost of owning a home continues to rise. For landlords and small-portfolio investors, this dynamic suggests a robust demand for rental properties, which could support higher occupancy rates and potentially steady rental income.
For long-term investors, the data points to a cautious appreciation thesis. While the current market conditions indicate strong seller pricing power and quick sales, the modest reduction in listing prices and the relatively low DOM suggest a market that might be approaching saturation. As such, appreciation expectations should be tempered. However, the ongoing demand for rentals, driven by the disparity between FMR and market rents, provides a solid foundation for cash flow generation. This makes rental properties an appealing option for those seeking steady income rather than rapid capital gains.
In summary, the current setup in ZIP 75221 favors sellers in terms of pricing power but also highlights the growing appeal of rental investments. Landlords can expect to benefit from a strong rental market, while small-portfolio investors should focus on the income potential of their assets rather than aggressive price increases. The median home value, reduced listings, and DOM metrics all point to a balanced yet competitive market environment.
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.