Section 8 Fair Market Rent (FMR) for ZIP 75216 - 2027

Investment Score for ZIP 75216

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	$1,070
1 Bedroom	$1,100
2 Bedrooms	$1,300
3 Bedrooms	$1,640
4 Bedrooms	$2,080
5 Bedrooms	$2,413
6 Bedrooms	$2,703
7 Bedrooms	$2,919
8 Bedrooms	$3,065

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	$1,100	$123,226	0.89%	C
2BR	$1,300	$145,365	0.89%	C
3BR	$1,640	$188,308	0.87%	C
4BR	$2,080	$264,644	0.79%	D
5BR	$2,413	$272,615	0.89%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75216 (Dallas, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75216 is set by HUD for 2026 as follows: - 0BR: $1120 - 1BR: $1170 - 2BR: $1370 (39.7% of median income) - 3BR: $1720 - 4BR: $2190 To understand how these figures compare to actual rents, we need to consider the typical rental prices in the area. The FMR for a 2BR unit is $1370, which is significantly lower than the Zillow median price for a 2BR home, which stands at $145,060. This suggests that the FMR is designed to be affordable for low-income households but may not reflect the true market value of properties in this ZIP code. One key constraint for voucher holders is the limited number of landlords who accept Section 8 vouchers. In ZIP 75216, where the median household income is $41,386, many renters rely on government assistance to afford housing. However, the high price-to-FMR ratio of 8.8x indicates that landlords might be hesitant to accept vouchers due to the perceived lower profitability compared to market rates. #### Affordability & Renter Profile ZIP code 75216 has a population of 55,894, with 44.2% of residents being renters. This means there are approximately 24,675 renters in the area. The occupancy rate of 91.2% suggests that the rental market is relatively tight, with most available units quickly occupied. Given the median household income of $41,386, the FMR for a 2BR unit ($1370) represents 39.7% of the median income. This implies that a significant portion of the renter population can afford the FMR, but they may struggle to find units that are priced at or below this level. The high price-to-FMR ratio further underscores the affordability challenge faced by renters in this ZIP code. #### Investor Angle From an investor perspective, the ZIP code 75216 offers mixed opportunities. The FMR for a 2BR unit is $1370, while the Zillow median price for a similar property is $145,060. Given the price-to-FMR ratio of 8.8x, it is clear that the market rents far exceed the FMR. However, for investors focusing specifically on Section 8 vouchers, the cash flow dynamics must be considered. Typically, landlords receive the difference between the FMR and the tenant’s contribution, which is usually 30% of their income. For a 2BR unit, if a tenant contributes 30% of the median income ($41,386), their monthly contribution would be approximately $1035. This leaves a gap of $335 per month for the landlord to cover operating costs and generate profit. The investment grade for this ZIP code can be assessed based on the occupancy rate and the percentage of renters. With a 91.2% occupancy rate and 44.2% of the population renting, there is a strong demand for rental units. However, the high price-to-FMR ratio suggests that the market is not aligned with the FMR, potentially leading to challenges in finding tenants willing to pay the FMR. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are already priced close to the FMR. For example, a 2BR unit priced at $1370 would be ideal for Section 8 tenants. This strategy can help ensure a steady stream of income and reduce the risk of vacancy. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR or 1BR may offer better cash flow potential. These units have lower FMRs ($1120 and $1170 respectively) and could attract tenants who are willing to pay closer to the FMR, thereby reducing the financial burden on landlords. 3. **Engage with Local Landlords**: Building relationships with local landlords who already accept Section 8 vouchers can provide valuable insights into the market. Understanding their experiences and strategies can help new investors navigate the unique challenges of this ZIP code. #### Bottom Line For Section 8-focused investors, ZIP code 75216 presents a challenging yet potentially rewarding opportunity. While the high price-to-FMR ratio suggests that market rents are significantly higher than the FMR, the strong demand for rental units and the high percentage of renters indicate a robust market. However, the tight margins and the need to engage with tenants who contribute only 30% of their income make this ZIP code a risky investment. Therefore, the recommendation for investors is to **Hold**. If you already own properties in this area, maintaining them and ensuring they are priced appropriately for Section 8 tenants can be beneficial. However, for new investors looking to enter the market, the risks outweigh the benefits given the current dynamics. In summary, the high price-to-FMR ratio and the limited number of landlords accepting vouchers create a challenging environment for both tenants and investors. Careful consideration of the specific market conditions and targeted strategies are essential for success in this ZIP code.

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.