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 | $224,297 | 0.66% | D |
| 3BR | $1,860 | $278,478 | 0.67% | D |
| 4BR | $2,370 | $314,878 | 0.75% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 75233, located in Dallas, TX, and Dallas County, operate based on specific financial metrics. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1530. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this specific area.
However, it's important to note that the local market rent for a similar two-bedroom unit is currently $1316, according to Census ACS data. This suggests that the SAFMR is higher than the average market rent, which could be beneficial for landlords.
A Section 8 voucher works by covering the difference between what a tenant can afford and the actual rent. Typically, the tenant is responsible for paying 30% of their adjusted monthly income towards rent. Additionally, there are utility allowances that vary but generally help offset some of the tenant's expenses. These allowances are not included in the SAFMR but are part of the overall compensation structure.
To illustrate, if a tenant's monthly income is $1000, they would pay 30% of that, which is $300, towards rent. The remaining balance up to the SAFMR of $1530 would be covered by the voucher program. If the market rent is below the SAFMR, such as $1316, the voucher program would cover the entire rent amount, leaving the landlord without a reimbursement gap and potentially benefiting from a surplus.
In ZIP 75233, where the SAFMR exceeds the local market rent, landlords can expect a surplus of $214 per month on average when renting a two-bedroom apartment to a tenant using a Section 8 voucher. This surplus occurs because the voucher covers the entire rent plus an additional amount that exceeds the local market rate. It's crucial for landlords to understand these dynamics to make informed decisions about participating in the Section 8 program.
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.