Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
U.S. Census Bureau data (2024)
A ZIP 75247 investment under the Section 8 program faces several potential issues that could impact profitability and operational stability. Firstly, tenant turnover poses a significant challenge, with the market rent at $1,179 being notably lower than the Fair Market Rent (FMR) of $1,350 for FY 2024. This discrepancy suggests that tenants may struggle to cover additional costs beyond the subsidized portion, leading to higher churn rates. Secondly, vacancy exposure is a concern due to the lack of data on the average number of days on the market (DOM), which makes it difficult to predict how long properties might remain vacant. Lastly, deferred maintenance is a risk factor, exacerbated by the median income of $20,200, which limits residents' ability to contribute to property upkeep.
Despite these challenges, the high renter share of 100.0% in ZIP 75247 indicates a robust demand for rental housing, which typically translates into strong interest in Section 8 vouchers. The scarcity of homeownership options and the concentration of renters can ensure a steady stream of qualified applicants, mitigating some of the risks associated with vacancy and turnover.
The combination of high renter density and the potential for consistent voucher-based occupancy offers a counterbalance to the financial and operational risks. However, landlords must be prepared for the possibility of lower-than-market rents and the need for regular maintenance support, given the limited income levels of the area's residents.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.