Location: Fannin County, 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 | $1,150 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,730 |
| 5 Bedrooms | $3,167 |
| 6 Bedrooms | $3,547 |
| 7 Bedrooms | $3,831 |
| 8 Bedrooms | $4,023 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,260 | $356,927 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 75490, located in the Fannin County, TX metro area, presents a clear opportunity for investors looking to capitalize on federal housing assistance programs. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1230, which is notably lower than the market rent of $1583 as reported by the Census Bureau's American Community Survey (ACS).
This difference indicates that voucher tenants will typically cashflow at the HUD FMR, meaning landlords can expect a shortfall when renting properties at the FMR rate. To ensure positive cashflow, landlords should focus on premium units that can command rents closer to the market rate of $1583. This approach will help cover operating costs and provide a modest profit margin.
The median home value in ZIP 75490 stands at $389,808. Using this figure, we can derive the rent-to-price ratio, which is approximately 0.4%. This low ratio suggests that the rental market is relatively undervalued compared to the housing market, potentially offering opportunities for long-term appreciation.
Note that the day median DOM (Days on Market) and the price-cut share are listed as N/A and 0.2%, respectively. These metrics indicate that the local real estate market is stable, with minimal need for price adjustments. Such conditions are favorable for investors seeking stable returns and predictable cashflows.
In summary, while voucher tenants may not cashflow at the HUD FMR in ZIP 75490, focusing on higher-end units can mitigate this issue. The potential for long-term appreciation makes the strongest case for investors, especially those interested in steady growth over time.
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.