Location: Hopkins County, 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 | $1,110 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $330,055 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 75422 reveals a market that balances between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone.
On the yield axis, the Fair Market Rent (FMR) for ZIP 75422 in fiscal year 2024 is set at $1,290. This compares favorably to the market rent of $1,166, indicating a potential upside when securing Section 8 tenants. The median home value stands at $361,108, which is significantly higher than the average rental income, suggesting that rental properties could offer better returns relative to property values in this area.
Moving to the stability axis, 18.6% of residents are renters, which is a relatively low percentage, pointing towards a less stable tenant base. However, the median household income of $75,690 is quite robust, which can offset some of the risks associated with a lower percentage of renters. Unfortunately, the data does not provide the number of days on the market (DOM), which would have been useful for assessing how quickly rental units turn over.
To summarize, ZIP 75422 offers a moderate yield opportunity due to the FMR being above the market rent, and it provides a stable cash flow thanks to the strong median income. However, the low percentage of renters indicates a somewhat unstable market for long-term investments. For landlords and small-portfolio investors, this suggests a balanced approach where they should focus on properties that can attract Section 8 tenants while also considering the potential for a higher turnover rate among non-subsidized renters.
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.