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 | $1,600 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,660 | $148,404 | 1.12% | B |
| 2BR | $1,950 | $198,510 | 0.98% | C |
| 3BR | $2,450 | $614,901 | 0.4% | F |
| 4BR | $3,120 | $1,144,507 | 0.27% | F |
| 5BR | $3,619 | $1,468,881 | 0.25% | F |
U.S. Census Bureau data (2024)
Dallas, TX's ZIP code 75254 is a densely populated urban neighborhood with over 25,050 residents. It stands out for its high percentage of renters at 75.1%, indicating a strong demand for rental properties. The median household income here is $67,216, which places it comfortably above the national average, suggesting a stable economic base. The median home value in the area is $299,675, reflecting the overall property values and indicating a mix of single-family homes and multi-unit buildings.
The rent economics in ZIP 75254 are particularly interesting for investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,940, while the actual market rent, as measured by ZORI, is $1,356. This gap between FMR and market rent presents an opportunity for landlords who can leverage the higher FMR to attract Section 8 tenants, thereby ensuring a steady stream of income through government subsidies.
Given these factors, ZIP 75254 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the presence of a significant number of renters and the alignment with Section 8 guidelines make it a reliable investment with minimal tenant turnover. On the other hand, value-add buyers can capitalize on the difference between FMR and market rent by improving properties and increasing their rental value, thus attracting a broader range of tenants beyond those on vouchers.
Investors should be aware of the local regulations and the specific requirements for participating in the Section 8 program, as compliance is key to maintaining a successful portfolio in this ZIP code. Additionally, understanding the local market dynamics will help in making informed decisions about property management and potential renovations.
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.