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 | $2,240 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $4,340 |
| 5 Bedrooms | $5,034 |
| 6 Bedrooms | $5,638 |
| 7 Bedrooms | $6,089 |
| 8 Bedrooms | $6,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,410 | $362,768 | 0.94% | C |
| 4BR | $4,340 | $460,042 | 0.94% | C |
| 5BR | $5,034 | $522,788 | 0.96% | C |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 75454 in the Dallas, TX area for fiscal year 2024 is set at $2,640. This figure represents the maximum amount that a landlord can charge for a rental property under the Section 8 Housing Choice Voucher program. In comparison, the market rent as measured by ZORI (Zillow's Observed Rental Index) is $1,996. This indicates that voucher tenants in this ZIP code would cashflow positively at the HUD FMR, meaning landlords could expect to receive a higher rent payment from Section 8 tenants than the average market rent.
To further analyze the investment potential, consider the median home value in ZIP 75454, which stands at $435,328. Using this figure, we can calculate the rent-to-price ratio, an important metric for understanding the relationship between rental income and property values. The rent-to-price ratio is approximately 0.46%, calculated by dividing the annualized market rent ($1,996 x 12 months) by the median home value ($435,328). This ratio suggests that rental properties in this area are undervalued relative to their market rents, making them attractive for investors looking to capitalize on this discrepancy.
The dynamics of the rental versus buying market also provide insights into the local real estate environment. The median days on market (DOM) for homes in this ZIP code is 47 days, indicating a relatively quick turnover for listings. Additionally, only 0.3% of homes have experienced price cuts, suggesting a strong and stable housing market. These factors imply that the rental market is likely to remain robust, supporting the viability of rental investments, particularly those participating in the Section 8 program.
In summary, the strongest investor angle in ZIP 75454 is cashflow. Landlords who participate in the Section 8 program can expect to receive higher rent payments than the average market rate, leading to positive cashflow scenarios. This makes Section 8 properties a lucrative option for both landlords and small-portfolio investors seeking steady returns in the Dallas, TX area.
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.