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 | $1,070 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $322,115 | 0.4% | F |
| 3BR | $1,640 | $466,236 | 0.35% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 75246 in Dallas, TX, include significant tenant turnover. The market rent for the area stands at $1,454, which is notably higher than the Fair Market Rent (FMR) set at $1,300 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy as tenants might struggle to keep up with the market rates.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a unit might remain vacant between tenancies, which can impact cash flow negatively.
A third risk factor is deferred maintenance. With a typical home value of $374,625 and a median household income of $53,555, there's a considerable gap that could indicate financial constraints for homeowners. For rental properties, this might translate into lower willingness or ability among tenants to cover maintenance costs, potentially leading to higher expenses for the landlord.
However, these risks must be weighed against the strong demand for rental housing. ZIP 75246 has a renter share of 80.1%, indicating a robust rental market. High renter density often correlates with increased demand for Section 8 vouchers, which can help ensure steady occupancy.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share suggests a moderate risk for a first-time Section 8 landlord in ZIP 75246. The strong rental market can mitigate some of the risks associated with the investment.
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.