Location: Fannin County, TX | Metro: Sherman-Denison, TX MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 75414 is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $970, while the Census ACS reports the market rent to be $981. This creates a gap of $11, or approximately 1.13%, indicating that the market rent slightly exceeds the FMR.
Given this scenario where the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of accepting housing vouchers. Voucher tenants pay a portion of their income towards rent, with the remainder subsidized by the government. In ZIP 75414, with a median income of $86,993, voucher recipients would typically contribute less than the full market rent, creating a financial burden for property owners who aim to maintain their properties at market standards.
The median home value in the area is $363,916, which suggests a relatively stable housing market. However, the 20.4% of renters indicates that a significant portion of the population relies on rental housing, including those who might benefit from Section 8 vouchers. Accepting voucher tenants can lead to longer tenancies and reduced turnover costs; however, the subsidy amount may not cover the full cost of maintaining the property at market conditions.
To illustrate, if a landlord sets the rent at the market rate of $981 but receives only the FMR of $970 per unit, the shortfall can accumulate over time. This discrepancy means landlords must either absorb the difference or seek ways to increase efficiency and reduce maintenance costs to achieve a positive cash flow.
In summary, while the gap between FMR and market rent in ZIP 75414 is minimal at $11, it presents a challenge for landlords who must balance the benefits of long-term tenancy with the potential financial strain of receiving less than the market rent. The analysis underscores the importance of understanding local rental dynamics and the specific financial considerations associated with housing voucher programs.
Data Sources: FMR data from HUD (2027). 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.