Location: Tyler, TX | Metro: Tyler, 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 | $890 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $181,842 | 0.89% | C |
U.S. Census Bureau data (2024)
The ZIP code 75702, located in Plano, Texas, presents an interesting scenario for both renters and landlords. The median income in this area stands at $51,564, while the market rate for rent is $1,202 per month (ZORI). This means that a significant portion of the population would find it challenging to afford market-rate rents without financial strain. The federal payment standard for housing vouchers in this ZIP code for fiscal year 2024 is set at $1,020, which is below the market rate but still higher than what some households might be able to pay.
In ZIP 75702, 47.1% of the population are renters, with a total population of 27,927. Given the disparity between the median income and the market rent, there is a notable affordability gap for many residents. This gap can translate into increased competition among landlords who accept housing vouchers, as it offers a reliable source of income compared to those relying solely on cash-paying tenants.
The takeaway for landlords considering their strategy regarding voucher versus cash-pay tenants is clear: accepting vouchers can provide a steady stream of rental income, albeit at a slightly lower rate than the market. However, with the affordability challenges faced by many in ZIP 75702, voucher tenants may offer greater stability and occupancy rates. Landlords should weigh the benefits of voucher reliability against the potential for higher market-rate rents from cash-paying tenants who can afford the $1,202 ZORI. In a competitive market where affordability is a concern, being open to both strategies could be the most prudent approach.
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.