Section 8 Fair Market Rent (FMR) for ZIP 75374 - 2027

FY 2027 Fair Market Rent Rates

To determine if you should buy in ZIP code 75374 for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1680 cover debt service on a property?

If the N/A value represents the average monthly mortgage payment plus other expenses (like property taxes and insurance), you need to compare it against the FMR. If the total debt service is less than $1680, then the answer is yes, the FMR covers your debt service. If the total debt service exceeds $1680, then the answer is no, the FMR does not cover your debt service.

2) Is the market rent above, at, or below the FMR of $1680?

If the market rent is above $1680, you can expect to charge more than what the government will pay for Section 8 vouchers, which could mean additional income from tenants who pay the difference. If the market rent is at $1680, the market rent matches the FMR exactly, meaning you can rely solely on the voucher amount without additional income from tenants. If the market rent is below $1680, you might be able to charge the full FMR, which is higher than what the market would typically bear, thus making it a favorable situation for landlords.

3) Are the rental demographics sufficient to meet demand?

The percentage of renters and the days on market (DOM) are key indicators of demand. If the percentage of renters in the area is high and the DOM is low (indicating that properties are rented quickly), then there is likely enough demand to support a Section 8 investment. However, since the data for the percentage of renters and DOM is marked as N/A, we cannot definitively answer this question without further information. If these metrics are available and show strong demand, the answer is yes. If they indicate weak demand, the answer is no.

Based on the available data, purchasing in ZIP 75374 for Section 8 purposes is contingent upon the answers to the above questions. If you can cover your debt service with the FMR and the market rent is either equal to or above the FMR, then the investment could be profitable. However, the lack of specific data regarding the rental population and DOM makes it difficult to assess the overall demand accurately.

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.