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 | $1,330 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $363,128 | 0.56% | F |
| 4BR | $2,590 | $562,017 | 0.46% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 75424 are significant and should be carefully considered. Firstly, the tenant turnover rate is a critical issue. With a market rent of $1,691 and a Fair Market Rent (FMR) set at $1,610 for FY 2024, landlords might experience higher turnover rates as tenants seek lower rents. This can lead to increased costs associated with finding new tenants, including advertising and screening expenses.
Vacancy exposure is another concern. The Days on Market (DOM) for vacant properties in this area is currently not available, which indicates that there may be inconsistencies in how quickly properties are filled. This uncertainty can result in periods where the property generates no income, increasing financial risk for the landlord.
Deferred maintenance is also a notable risk. Given the typical home value of $448,231 and a median income of $89,157, many residents may struggle to keep up with maintenance costs, potentially leading to a higher need for repairs and renovations. Landlords must be prepared to invest in regular upkeep to maintain property standards and ensure compliance with housing regulations.
However, these risks are tempered by the high renter share of 12.0%. A larger proportion of renters typically translates into higher demand for rental assistance vouchers such as Section 8. This means that there is a good likelihood of finding qualified tenants who can use their vouchers to cover a significant portion of the rent, stabilizing cash flow and reducing the overall risk.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 75424 is moderate.
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.