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 | $1,900 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,900 | $309,021 | 0.94% | C |
| 4BR | $3,680 | $358,131 | 1.03% | B |
| 5BR | $4,269 | $431,533 | 0.99% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75409, located in the Dallas, TX HUD Metro FMR Area, reveals several key insights for landlords and small-portfolio investors. First, let's examine whether the rent math works. The Fair Market Rent (FMR) for ZIP 75409 in fiscal year 2024 is set at $2440. However, the current market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1953. This means that the actual rent you can charge is below the FMR, indicating a gap between what is considered fair and what the market will bear.
Moving on to the affordability of acquisitions, the median home value in ZIP 75409 is $348,202. With an average of 85 days on the market (DOM) and only 0.3% of homes experiencing price cuts, it suggests that the real estate market is stable and homes are generally selling without significant discounts. This stability can be beneficial for investors looking to acquire properties without overpaying.
To assess tenant demand, we look at the demographic data. ZIP 75409 has a population of 27,131, with 19.1% being renters. This indicates a moderate tenant base, but the percentage of renters is relatively low compared to other areas, which might suggest a smaller pool of potential tenants.
Verdict: While the real estate market in ZIP 75409 offers stable conditions for acquisitions, with homes selling close to their asking prices, the rent math does not align favorably with the FMR. Investors should expect to charge less than the FMR, which could impact their expected returns. Additionally, the lower renter share suggests that competition for tenants may be higher, necessitating well-maintained properties and competitive rental rates. Despite these challenges, the stable home values and quick sales indicate a solid investment opportunity, provided investors are willing to adjust their rental expectations and actively manage their properties to attract and retain tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.