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 | $1,220 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $198,311 | 0.75% | D |
| 3BR | $1,860 | $276,304 | 0.67% | D |
| 4BR | $2,370 | $356,903 | 0.66% | D |
| 5BR | $2,749 | $443,289 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP code 75228, covering the Pleasant Grove and Balch Springs areas of southeast Dallas, is a classic suburban-urban fringe neighborhood characterized by post-war ranch-style homes and a strong sense of local commerce. The area offers a convenient location near the intersection of Interstate 635 (LBJ Freeway) and U.S. Highway 175, providing solid transit connectivity for working-class commuters. For economic grounding, the Dallas Independent School District is a major institutional presence and employer here, operating multiple campuses including the well-regarded Samuell High School, which anchors the community and drives consistent family-oriented housing demand.
From a strictly numerical standpoint, this ZIP presents a notable spread between subsidized and market rates. The HUD SAFMR for a 2-bedroom unit is set at $1,420, whereas the current market rent (Zillow ZORI) lags significantly at $1,149. This creates a gross gap of $271 per month in favor of voucher holders. With a median home value of $280,196 and properties sitting on the market for a median of 57 days, the acquisition costs are moderate. For investors using vouchers, the guaranteed $1,420 vastly outperforms the organic market cap of $1,149, suggesting strong potential for cash flow relative to the $202,480 median 2BR sales price.
The tenant pool here is substantial, with 50.8% of households renting and a median household income of $62,667. While the income is decent, it is likely insufficient to comfortably absorb rising rents without assistance, driving families toward the Housing Choice Voucher program. The presence of major employers like the Dallas ISD, combined with the area's freeway access, ensures a steady stream of potential tenants who need housing stability. This environment supports a consistent demand for affordable 3- and 4-bedroom units, aligning well with the higher Fair Market Rates for larger family homes.
The Section 8 verdict for 75228 is grounded in cash flow arbitrage. The specific strength lies in the $271 premium the HUD SAFMR pays over the going market rate for 2-bedroom units. Because market rents are depressed compared to the government benchmark, voucher holders effectively act as a premium tenant class, guaranteeing payments higher than what the open market currently bears. For a small-portfolio investor, this differential offers a buffer against vacancy and rent default, making the area a compelling target for turnkey rental strategies focused on government-backed revenue.
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.