Location: Fannin 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 | $1,010 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $298,046 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 75423 is situated in a suburban neighborhood characterized by a modest population size of 3,104 residents. The area reflects a typical mix of homeowners and renters, with 19.1% of the population being renters. The median household income in this region stands at $59,375, indicating a middle-class community where residents have stable financial situations but may still find renting preferable due to economic reasons or lifestyle choices.
The median home value in ZIP 75423 is $370,934, which suggests a relatively affordable housing market compared to many urban areas. This figure also implies that homeownership is attainable for a significant portion of the local population, given the median income levels. However, for those seeking rental properties, the landscape offers opportunities for both landlords and small-portfolio investors.
From an investment perspective, the rent economics in ZIP 75423 present a compelling opportunity. According to the Fair Market Rent (FMR) set by the Department of Housing and Urban Development for the fiscal year 2024, the FMR is $1,380. In contrast, the Census Bureau's American Community Survey (ACS) reports the average market rent at $748. This discrepancy highlights the potential for landlords to receive higher rents through Section 8 vouchers, effectively subsidizing a portion of the housing cost for low-income tenants while allowing landlords to charge closer to the FMR.
Given these figures, ZIP 75423 aligns well with the profile of a hands-off voucher operator. Landlords can benefit from the guaranteed rental income provided by the government subsidy, which minimizes the risk associated with tenant turnover and unpaid rent. For hands-on investors looking to add value, the lower market rent suggests there is room to improve property quality and potentially command higher rents under the FMR cap, thereby increasing profitability.
In summary, ZIP 75423 offers a balanced environment for both passive and active real estate investors interested in Section 8 properties. With a median income of $59,375 and a median home value of $370,934, the area supports a sustainable rental market. The significant gap between the FMR of $1,380 and the current market rent of $748 presents a clear advantage for voucher operators and a strategic entry point for value-add buyers.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.