Section 8 Fair Market Rent (FMR) for ZIP 76010 - 2027

Investment Score for ZIP 76010

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,320
1 Bedroom	$1,340
2 Bedrooms	$1,580
3 Bedrooms	$2,070
4 Bedrooms	$2,600
5 Bedrooms	$3,016
6 Bedrooms	$3,378
7 Bedrooms	$3,648
8 Bedrooms	$3,830

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$204,691	0.77%	D
3BR	$2,070	$231,288	0.89%	C
4BR	$2,600	$268,316	0.97%	C
5BR	$3,016	$314,154	0.96%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76010 (Arlington, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 76010 in Arlington, TX, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1570 per month. However, the actual rent prices in the area can be significantly higher. The Zillow median price for a two-bedroom home in this ZIP code is $198,639, which translates into a monthly rental cost that is approximately 10.5 times the FMR. This means that landlords who want to participate in the Section 8 program must cap their rents at the FMR levels, which can be challenging given the high demand and limited supply of affordable housing units. Voucher holders face significant constraints due to the disparity between the FMR and the actual market rents. With a median household income of $45,466, a two-bedroom unit at the FMR represents 41.4% of the median income, which is already a substantial portion. If rents exceed the FMR, voucher holders will struggle to find suitable housing options, potentially leading to a shortage of available units for them. #### Affordability & Renter Profile ZIP code 76010 has a population of 54,978, with 68.7% of residents being renters. This indicates a strong rental market where a majority of the population relies on renting rather than owning homes. The occupancy rate of 90.4% suggests that the market is relatively tight, with most available units being occupied. Given the high percentage of renters and the tight occupancy rate, it is likely that there is a competitive environment for rental properties, especially those that are affordable. The median household income of $45,466 places many residents in a position where they need assistance to afford housing. The FMR for a two-bedroom unit at $1570 is a critical benchmark for affordability. However, with the average price-to-FMR ratio being 10.5x, it is clear that the market is not aligned with the financial capabilities of the typical resident. This mismatch creates a challenge for both renters and landlords, as it limits the number of affordable units and increases competition among voucher holders. #### Investor Angle From an investor’s perspective, participating in the Section 8 program in ZIP code 76010 can be financially viable but requires careful consideration. The FMR for a two-bedroom unit is $1570, which is the maximum rent a landlord can charge if they want to accept Section 8 vouchers. Given that the median home price for a two-bedroom unit is $198,639, the monthly rental cost would typically be much higher than the FMR. To determine if this ZIP code is cash-flow positive at the FMR, we need to consider the typical expenses associated with property management. Assuming a conservative estimate of 30% of the FMR for maintenance and other costs, the net income would be around $1100 per month. This amount needs to cover mortgage payments, insurance, taxes, and other operational costs. If the property was purchased at the median price, the monthly mortgage payment alone could be upwards of $1000, leaving very little margin for profit. Therefore, while it is possible to achieve positive cash flow, it would require efficient management and low-cost acquisition. The investment grade for this ZIP code is moderate. While the high percentage of renters and tight occupancy rate suggest a robust demand for rental properties, the significant gap between the FMR and market rents poses a risk. Investors should focus on properties that can be acquired at or below the FMR level to ensure profitability. #### Specific Actionable Insights 1. **Target Affordable Properties:** Investors should prioritize acquiring properties that can be rented out at or near the FMR levels. For example, a two-bedroom unit priced at $1570 or slightly below would be ideal for attracting Section 8 voucher holders. This strategy ensures that the property remains within the budget constraints of the typical resident and maximizes the chances of securing tenants. 2. **Focus on Smaller Units:** Given the high price-to-FMR ratio, smaller units such as one-bedroom apartments might offer better opportunities for positive cash flow. The FMR for a one-bedroom unit is $1340, which is lower than the FMR for a two-bedroom unit. This could provide a more manageable expense-to-income ratio for landlords, particularly if the purchase price of these units is also lower. 3. **Consider Multi-family Buildings:** Multi-family buildings can help diversify risk and increase the likelihood of positive cash flow. By having multiple units, landlords can spread the fixed costs across several tenants, making it easier to manage expenses and maintain profitability even if some units are rented at the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 76010 is to **Hold**. The market presents both opportunities and challenges. While there is a strong demand for rental properties and a significant number of potential voucher holders, the high price-to-FMR ratio makes it difficult to achieve positive cash flow without careful selection of affordable properties. Investors should focus on smaller units and multi-family buildings to optimize their returns and ensure they can attract and retain tenants effectively. In summary, ZIP code 76010 in Arlington, TX, is a mixed bag for Section 8 investors. The high demand for rentals and the large percentage of renters make it a promising market, but the significant gap between FMR and actual rents requires strategic planning and selective acquisitions to ensure profitability.

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.