Location: Sherman-Denison, TX | Metro: Sherman-Denison, TX MSA
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 | $1,140 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,990 | $262,765 | 0.76% | D |
U.S. Census Bureau data (2024)
The ZIP code 75459 stands out in its county with a population of 6,554 residents, where 27.6% of the residents are renters. The median income in this area is $71,228, and the median home value is $306,050. These figures provide a robust economic backdrop that supports both homeownership and rental activities.
When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 75459 in fiscal year 2024 is set at $1,160, which is notably lower than the Census ACS reported market rent of $1,342. This discrepancy suggests that landlords in this ZIP code could potentially face a reduction in rental income if they accept Section 8 tenants. However, the lower FMR can also be seen as an opportunity to attract a steady stream of tenants who are guaranteed rental payments through the voucher program.
Given the data signature of ZIP 75459, it reads as stable rather than transitional. The relatively high median income indicates a solid financial foundation among residents, and the significant portion of homeowners suggests a preference for long-term stability. While the rental market has a sizeable presence, the difference between the FMR and market rent implies a balanced environment where landlords can still achieve reasonable returns while participating in the Section 8 program.
Landlords and small-portfolio investors should consider these factors when deciding whether to participate in the Section 8 housing assistance program. Despite the lower FMR, the overall economic health of the area provides a secure investment climate. Moreover, the consistent demand for rental properties can ensure a stable tenant base.
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.