Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 75238 in Dallas, TX, reveals a significant gap between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2024, the FMR in ZIP 75238 is $1550, while the Zillow Observed Rent Index (ZORI) indicates an average market rent of $1333. This means landlords can charge $217 more per month under the Section 8 program compared to the open market, representing a 16.3% increase over the ZORI.
The higher FMR relative to the market rent makes Section 8 voucher tenants particularly attractive for yield-focused investors in Dallas. With 49.6% of residents renting, there is a substantial demand for affordable housing. The median home value stands at $627,387, which is considerably high, pushing many towards rental options. Additionally, the median income of $82,019 suggests that a portion of the population would benefit from the financial assistance offered through Section 8 vouchers.
However, accepting Section 8 tenants also comes with its own set of challenges. Landlords must ensure their properties meet certain standards and are willing to accept a fixed rate set by the government, even if it's below the open-market rates. This can result in lower immediate cash flow but offers long-term stability and a guaranteed tenant who pays on time. The gap between the FMR and market rent in ZIP 75238 provides a unique opportunity for landlords to balance these factors and potentially achieve better yields than those found in the competitive open-market rental sector.
Data Sources: FMR data from HUD (2027). 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.