Section 8 Fair Market Rent (FMR) for ZIP 75287 - 2027

Investment Score for ZIP 75287

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,640
1 Bedroom	$1,690
2 Bedrooms	$1,990
3 Bedrooms	$2,510
4 Bedrooms	$3,190
5 Bedrooms	$3,700
6 Bedrooms	$4,144
7 Bedrooms	$4,476
8 Bedrooms	$4,700

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,690	$159,046	1.06%	B
2BR	$1,990	$265,451	0.75%	D
3BR	$2,510	$402,522	0.62%	D
4BR	$3,190	$704,180	0.45%	F
5BR	$3,700	$1,141,773	0.32%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 75287 (Dallas, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 75287, as determined by HUD for 2026, is set at $2150 for a two-bedroom unit. This figure represents 40.5% of the median household income in the area, which stands at $63,741. However, the actual rental market in 75287 is significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom property is $272,737, translating to a monthly rent of approximately $2,273 based on a typical 1.2% cap rate. The price-to-FMR ratio of 10.6x indicates that the actual market rents are well above the FMR, creating a significant constraint for voucher holders. They will likely find it challenging to secure housing within their budget, particularly for larger units like three-bedroom ($2710) and four-bedroom ($3440) properties. #### Affordability & Renter Profile ZIP code 75287 has a high renter population percentage of 77%, indicating a strong demand for rental properties. With an occupancy rate of 92.2%, the market is relatively tight, suggesting that there is little excess supply of rental units. Given the high renter population and limited vacancy, landlords have the upper hand in setting higher rents, which can be problematic for low-income renters who rely on Section 8 vouchers. The median household income of $63,741 is moderate, but the high renter population implies that many residents are likely to be in lower-income brackets, making the affordability gap even more pronounced. #### Investor Angle From an investor perspective, the ZIP code 75287 presents a mixed picture. While the actual market rents are higher than the FMR, this also means that properties rented at FMR levels may struggle to compete with market rates. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical operating costs and mortgage payments. Assuming an average cost of $10 per square foot for maintenance and utilities, and a mortgage payment of around $1,200 for a two-bedroom unit, the total monthly expenses would be approximately $1,400. At the FMR of $2150, the net cash flow would be positive by about $750 per month. However, this assumes that the property can be rented out at FMR, which may be difficult given the tight market and higher actual rents. The investment grade for this ZIP code is moderate due to the high demand for rentals and the tight market conditions. However, the challenge lies in finding tenants willing to pay the FMR when market rents are much higher. Investors should carefully evaluate the local rental market dynamics before committing to Section 8-focused investments. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments may be more viable for Section 8 tenants. The FMR for a one-bedroom unit is $1830, which is closer to the actual market rent of around $1,500 based on the Zillow median price. This makes it easier for voucher holders to find suitable housing and for investors to maintain positive cash flow. 2. **Consider Renovation Projects**: Investors might find opportunities in older properties that require renovation. By improving these units, they can potentially command higher rents while still remaining within the FMR guidelines. This strategy could help bridge the affordability gap and make properties more attractive to both voucher holders and market-rate renters. 3. **Explore Multi-family Developments**: Given the high renter population and limited vacancy, multi-family developments could be a lucrative investment. These projects can cater to a broader range of tenants, including those using Section 8 vouchers. By diversifying the unit sizes and amenities offered, investors can attract a mix of voucher holders and market-rate renters, thereby stabilizing cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 75287 is to **Hold**. The high renter population and tight market conditions suggest that there is a strong demand for rental properties. However, the significant gap between FMR and actual market rents means that finding tenants willing to pay FMR may be challenging. Investors should focus on smaller units and consider renovation projects to improve the chances of attracting Section 8 tenants. Additionally, exploring multi-family developments could provide a more stable investment opportunity. Overall, while the ZIP code shows promise, the high market rents present a barrier that needs to be carefully navigated.

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.