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 | $1,330 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $85,849 | 1.6% | A+ |
| 2BR | $1,610 | $156,925 | 1.03% | B |
| 3BR | $2,030 | $616,511 | 0.33% | F |
| 4BR | $2,580 | $861,026 | 0.3% | F |
| 5BR | $2,993 | $1,123,478 | 0.27% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 75231, located in the Dallas, TX HUD Metro FMR area, does not align perfectly. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1570, which is notably higher than the market rent indicated by ZORI at $1344. This discrepancy suggests that landlords might struggle to find tenants willing to pay the FMR rate, especially if they aim to cater to those who qualify for housing assistance.
Acquisition in this ZIP code appears to be reasonably affordable. With a median home value of $299,823, purchasing properties here is within reach for many investors. Additionally, the average days on market (DOM) stands at 55 days, and only 0.2% of homes are listed with a price cut. These factors indicate that the market is relatively stable, with homes selling quickly and without significant discounts.
Tenant demand is strong in ZIP 75231. The area has a population of 38,370, with 81.7% being renters. This high percentage of renters signals a robust demand for rental properties, making it an attractive location for landlords and small-portfolio investors looking to capitalize on a market where renting is the preferred housing option.
In conclusion, while the rent math in ZIP 75231 presents a challenge due to the disparity between the FMR and market rent rates, the affordability of property acquisition and the substantial tenant demand make it a viable investment opportunity. Landlords should focus on market rates rather than relying solely on FMR to ensure occupancy and profitability. Despite the initial hurdles, the quick turnover of properties and high renter share suggest a promising outlook for those willing to adapt their pricing strategies accordingly.
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.