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 | $1,560 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $410,493 | 0.46% | F |
| 3BR | $2,380 | $538,708 | 0.44% | F |
| 4BR | $3,030 | $779,296 | 0.39% | F |
| 5BR | $3,515 | $1,284,289 | 0.27% | F |
U.S. Census Bureau data (2024)
The ZIP code 75218 in Dallas, TX, is primarily characterized by a significant proportion of renters, comprising 35.7% of the population. This indicates that the area has a notable tenant pool, but it is not overwhelmingly dominated by renters. The median household income in this ZIP is $107,366, which suggests that residents have a relatively high earning potential.
Average market rent in the area is $1,575, which represents approximately 14.7% of the median household income. This percentage is calculated by dividing the average rent by the median income ($1,575 / $107,366 = 0.0147). In comparison to the Fair Market Rent (FMR) of $1,930 for FY 2024, the current market rent is lower, indicating that rents in 75218 are below the benchmark set by HUD for the area.
The FMR is an important figure for landlords because it helps determine the maximum amount that can be charged for housing under the Section 8 program. Given the lower market rent compared to the FMR, landlords in 75218 have some flexibility in pricing their units while still being eligible for Section 8 vouchers.
In terms of tenant profiles, landlords in this ZIP can expect a mix of tenants who may qualify for Section 8 vouchers. However, due to the higher median income, many residents might be able to afford market rates without assistance. The presence of a substantial renter population means there is demand for rental properties, but the likelihood of encountering a large number of Section 8 tenants is moderate rather than high.
To attract and retain tenants, landlords should consider the economic context of the area. With a median income well above the national average, many renters will likely seek higher-quality amenities and maintenance standards. While Section 8 tenants represent a portion of the rental market, landlords should also cater to the broader range of renters who can pay closer to market rates.
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.