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 | $2,200 |
| 1 Bedroom | $2,270 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,360 |
| 4 Bedrooms | $4,270 |
| 5 Bedrooms | $4,953 |
| 6 Bedrooms | $5,547 |
| 7 Bedrooms | $5,991 |
| 8 Bedrooms | $6,291 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,270 | $232,705 | 0.98% | C |
| 2BR | $2,670 | $412,188 | 0.65% | D |
| 3BR | $3,360 | $1,583,008 | 0.21% | F |
| 4BR | $4,270 | $2,557,472 | 0.17% | F |
| 5BR | $4,953 | $3,643,227 | 0.14% | F |
U.S. Census Bureau data (2024)
The University Park area, designated by ZIP code 75225, presents a dynamic rental market influenced by a delicate balance between supply and demand. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2,640, while the actual market rent, as measured by Zillow's ZORI index, stands at $3,024. This indicates that the market rent exceeds the government-set FMR, suggesting a scenario where demand slightly outpaces supply.
A key indicator of this imbalance is the low price-cut share of just 0.2%. Typically, a lower percentage signals a competitive market where landlords have less incentive to reduce rents to attract tenants. Furthermore, the Days on Market (DOM) figure of 46 days suggests a swift rental process, reinforcing the notion that properties are readily occupied once listed.
The median home value in University Park is $2,057,933, which places it among higher-value neighborhoods. Despite this, the 24.1% renter share is noteworthy. This high proportion of renters can imply ongoing housing pressure, as a significant portion of the population is not able to purchase homes at the current median value. It also suggests that there is a continuous need for rental units, which could be driven by factors such as student populations, young professionals, or individuals who prefer renting over buying.
In summary, the rental market in University Park, TX, is characterized by a slight tilt towards demand exceeding supply, evidenced by the higher market rent compared to FMR, low price-cut share, and quick DOM. The substantial renter share points to an environment where rental housing remains a critical component of the local housing landscape, indicating sustained pressure on the rental market. Landlords and small-portfolio investors should take note of these dynamics as they navigate the University Park real estate scene.
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.