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 | $1,650 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,700 | $125,036 | 1.36% | A |
| 2BR | $2,000 | $249,327 | 0.8% | C |
| 3BR | $2,520 | $348,365 | 0.72% | D |
| 4BR | $3,200 | $525,345 | 0.61% | D |
| 5BR | $3,712 | $779,533 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,980 for ZIP 75234 in 2024 will sufficiently cover the mortgage on a home valued at $360,943. According to recent data, the median home value in Farmers Branch, TX, is around $500,800. To calculate the mortgage payment, consider the prevailing interest rates. As of the latest search, typical mortgage rates range from 5.25% to 6.5%, depending on the type of loan and creditworthiness of the borrower. A 30-year fixed-rate mortgage on a $360,943 home with a 20% down payment would result in monthly payments ranging from approximately $1,600 to $1,850, assuming the lower end of the interest rate spectrum. Therefore, the FMR of $1,980 should comfortably cover the mortgage, leaving room for maintenance and other expenses.
The investor may also wonder if the 48.6% rental demand in Farmers Branch, TX, is sufficient. Rental demand statistics indicate that the average rent for a one-bedroom apartment is $1,472, while a two-bedroom apartment averages $2,043. This suggests a robust rental market, particularly for larger units. The high median rent of $1,512 further supports the idea that there is significant demand for rental properties in this area. Moreover, the presence of numerous rental listings across different platforms indicates a healthy competition among landlords, which can be seen as a positive sign of active market engagement.
A final concern might be whether housing vouchers will keep pace with market rents of $1,631. While the data does not provide specific information on voucher amounts, it's important to note that the U.S. Department of Housing and Urban Development (HUD) adjusts voucher values annually based on local market conditions. In ZIP 75234, some properties do not accept housing vouchers, but those that do often find them competitive with market rents. Given the median rent of $1,512, vouchers are likely to be close to or slightly above this figure, making them a viable option for tenants seeking affordable housing.
In conclusion, while the data does not fully address every aspect of the investor's concerns, it does suggest that the rental market in ZIP 75234 is strong enough to support both mortgage payments and rental demand. Vouchers, although not explicitly quantified, are likely to remain competitive with market rents, providing a steady stream of potential tenants.
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.