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 | $1,800 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,490 |
| 5 Bedrooms | $4,048 |
| 6 Bedrooms | $4,534 |
| 7 Bedrooms | $4,897 |
| 8 Bedrooms | $5,142 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,180 | $311,124 | 0.7% | D |
| 3BR | $2,740 | $571,856 | 0.48% | F |
| 4BR | $3,490 | $893,307 | 0.39% | F |
| 5BR | $4,048 | $1,273,571 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP 75244, Dallas, TX, are significant. Tenant turnover is a critical issue, with market rents averaging $1,809 compared to the Federal Market Rent (FMR) of $2,160 for FY 2024. This discrepancy suggests that tenants might be more likely to leave when their vouchers expire, seeking higher-value housing elsewhere. Vacancy exposure is another concern, though the number of days on market (DOM) is currently unavailable, indicating a lack of recent data on how quickly properties are rented out. Given the typical home value of $719,156 and the median income of $120,286, landlords should also anticipate deferred maintenance costs. The disparity between property values and median incomes can lead to tenants struggling to afford upkeep, placing the burden on landlords to maintain the property's condition.
Despite these challenges, the high renter share of 48.7% provides a silver lining. High renter density typically translates into greater demand for rental properties, including those utilizing Section 8 vouchers. A larger pool of potential tenants means a better chance of finding stable, long-term residents who rely on government assistance to cover their housing costs. This demand helps mitigate the risk of vacancy and ensures a steady stream of rental income, albeit at a lower rate than market rents.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.