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 | $1,590 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $131,615 | 1.25% | A |
| 2BR | $1,930 | $272,804 | 0.71% | D |
| 3BR | $2,430 | $307,527 | 0.79% | D |
| 4BR | $3,090 | $331,718 | 0.93% | C |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 75235, Dallas, TX, presents a nuanced picture for both landlords and small-portfolio investors. With a median home value of $275,186, the area reflects a stable housing market where property values have remained consistent. The fact that only 0.2% of listings have been reduced indicates a strong seller's market, suggesting that homes are generally priced appropriately and that there is little need for significant price adjustments to attract buyers.
The median days on market (DOM) being listed as 'N/A' could imply that properties are selling quickly, often before a comprehensive DOM can be calculated. This rapid turnover is a positive indicator for pricing power, as it suggests high demand relative to supply. Landlords and investors should expect to maintain or even slightly increase rental rates without losing tenants due to the scarcity of available housing options.
On the rental side, the Fair Market Rent (FMR) for ZIP 75235 in fiscal year 2024 is projected at $1,840, while the current market rate, as indicated by ZORI, stands at $1,523. This gap signals an opportunity for landlords to incrementally raise rents towards the FMR level, aligning with anticipated market conditions and ensuring they remain competitive. However, any such increases should be gradual to avoid tenant churn.
For long-term investors, the setup in ZIP 75235 points towards a moderate appreciation thesis. Given the current stability in home values and the slight upward pressure on rents, it is reasonable to anticipate that property values will continue to rise, albeit at a measured pace. The alignment of future rental projections with current market rates suggests a balanced growth trajectory, supporting the idea that investments in this area will yield steady returns over time.
Investors should focus on maintaining quality properties to command higher rents and potentially higher resale values. The combination of a stable median home value, low listing reductions, and a favorable rental market dynamic implies a resilient local economy capable of sustaining modest but reliable growth in real estate assets. This makes ZIP 75235 a solid choice for those looking to build a long-term real estate portfolio in Dallas, TX.
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.