Location: Freestone County, TX | Metro: Freestone County, TX
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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $227,684 | 0.64% | D |
| 4BR | $1,510 | $310,179 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 75840 is located in a suburban area of Collin County, Texas, near the city of Plano. This neighborhood is characterized by a relatively small population of 6,994 residents, with 31.9% of them being renters. The median household income here stands at $58,224, indicating a middle-class community. The median home value is $225,424, which suggests that homeownership is accessible but not without a significant financial commitment.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 75840, as determined by HUD for metro areas in fiscal year 2026, is set at $1,010. However, the actual market rent, according to the Census Bureau's American Community Survey (ACS), is lower at $878 per month. This discrepancy between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors to capitalize on the government subsidy while potentially offering slightly above-market rents.
Given these figures, ZIP 75840 would suit both hands-off voucher operators and hands-on value-add buyers. For those seeking a passive income stream, the gap between the FMR and market rent allows for a buffer that can cover maintenance costs and other expenses associated with managing properties. Meanwhile, hands-on investors could focus on improving property values and rents through renovations and strategic management practices, leveraging the higher FMR to justify increased rents.
In summary, ZIP 75840 offers a stable environment for investment, with a mix of opportunities for different types of investors. Whether you're looking to manage properties with minimal effort or actively seek to increase your returns through value-added strategies, the economic landscape here supports both approaches.
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.