Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,420 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
The economics of Section 8 in ZIP code 75315, located in Dallas County, Texas, are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1680 for fiscal year 2024. This figure represents the maximum amount that the housing authority will pay towards the rent subsidy for a tenant with a voucher.
To break it down further, the voucher system operates on a split where the tenant pays a portion of their income towards the rent, typically 30%, and the government covers the rest up to the SAFMR limit. Additionally, there are utility allowances that can be included in the total reimbursement, but these vary based on the household's actual expenses and the type of utilities used.
Let's assume a tenant's income is $2000 per month. At 30%, they would contribute $600 towards the rent. If the total rent is $1680, the government would cover the remaining $1080. However, if the market rent for a two-bedroom in ZIP 75315 exceeds $1680, the landlord would have to negotiate a lower rent with the tenant to stay within the SAFMR limits or risk not being able to accept tenants with vouchers.
In cases where the market rent is less than the SAFMR, landlords might receive a surplus. For instance, if the market rent is $1500, the government would still pay up to $1680, creating a potential surplus for the landlord. Conversely, if the market rent is higher than the SAFMR, landlords will face a reimbursement gap. They must decide whether to absorb the difference or adjust the rental price to match the SAFMR.
Given the SAFMR of $1680 and assuming the local market rent is below this figure, landlords would likely see a surplus when renting to tenants with vouchers. However, without specific local market rent data, it's impossible to quantify this surplus accurately. Landlords should monitor local rental trends and compare them against the SAFMR to make informed decisions about their rental pricing strategy.
Data Sources: FMR data from HUD (2027).
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.