Location: Fort Worth-Arlington, TX | Metro: Fort Worth-Arlington, 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 | $2,190 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,430 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,430 | $469,830 | 0.73% | D |
| 4BR | $4,300 | $642,115 | 0.67% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 76005 reveals a detailed picture of the Section 8 cap rate scenario, using specific figures from the data provided. The annualized Fair Market Rent (FMR) for a two-bedroom property in this area for fiscal year 2024 is $1620, while the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,824.
To calculate the gross yield for both scenarios, we first need to consider the median home value, which is $539,887. The gross yield for the Section 8 scenario can be derived by dividing the annualized FMR by the median home value. This results in an implied gross yield of approximately 0.3%, calculated as follows:
For the market rent scenario, we use the ZORI figure to determine the gross yield. Dividing the annual market rent by the median home value gives us an implied gross yield of about 0.34%, calculated as:
Given the 19.9% renter density in ZIP 76005, it is important to note that the availability of tenants willing to pay the market rent is relatively low. This makes the Section 8 scenario more realistic for investors looking to secure a steady stream of rental income. The N/A-day Days on Market (DOM) indicates that there might be a lack of recent sales data for the area, which could affect the reliability of the median home value used in these calculations.
In conclusion, while the market rent scenario offers a slightly higher gross yield, the Section 8 scenario provides a more stable and predictable income source, aligning better with the lower renter density observed in ZIP 76005. Investors should weigh the trade-offs between the two scenarios based on their risk tolerance and investment goals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.