Section 8 Fair Market Rent (FMR) for ZIP 76017 - 2027

Investment Score for ZIP 76017

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	$1,530
1 Bedroom	$1,550
2 Bedrooms	$1,830
3 Bedrooms	$2,400
4 Bedrooms	$3,010
5 Bedrooms	$3,492
6 Bedrooms	$3,911
7 Bedrooms	$4,224
8 Bedrooms	$4,435

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	$1,830	$226,459	0.81%	C
3BR	$2,400	$300,942	0.8%	D
4BR	$3,010	$376,099	0.8%	C
5BR	$3,492	$471,598	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76017 (Arlington, TX) #### Section 8 Voucher Dynamics In ZIP code 76017, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1800 per month for the year 2026. This represents 24.0% of the median household income of $90,083. However, the actual rental market prices can be significantly higher. The Zillow median price for a two-bedroom property is $225,084, which translates into a monthly rent of approximately $1875 when considering a typical mortgage payment (assuming a 4.5% interest rate over 30 years). This means that the actual rents are about 4.2% higher than the FMR. Given that the FMR is lower than the actual market rates, tenants using Section 8 vouchers might face challenges finding suitable housing. Landlords often prefer to charge market rates, which can exceed the FMR by a considerable margin. For instance, a landlord could easily ask for $1900-$2000 for a two-bedroom unit, which would be beyond the $1800 limit imposed by the voucher program. This creates a constraint for voucher holders, limiting their options to units priced at or below the FMR. #### Affordability & Renter Profile The population of ZIP 76017 is 47,074, with 34.2% of residents being renters. The occupancy rate is quite high at 94.4%, indicating a tight rental market where demand outstrips supply. With a median household income of $90,083, the majority of residents have the financial capability to afford market-rate rentals. However, the 34.2% of renters who rely on Section 8 vouchers must navigate a challenging environment where affordable units are scarce. The high occupancy rate suggests that there is little vacancy in the rental market, making it difficult for renters to find available properties. Additionally, the relatively high median income implies that many residents can afford to pay above the FMR, further tightening the market for those dependent on vouchers. The 24.0% of median income allocated to FMR for a two-bedroom unit indicates that while it is affordable for some, it still represents a significant portion of their budget. #### Investor Angle From an investor perspective, the ZIP code 76017 offers a mixed outlook. The FMR for a two-bedroom unit is $1800, but the actual market rent is around $1875. While this suggests that landlords could potentially earn slightly above the FMR, the tight market conditions mean that competition for tenants is fierce. Investors should consider the following: - **Cash Flow**: At the FMR, investors may struggle to achieve positive cash flow due to the high cost of acquisition and maintenance. The Zillow median price of $225,084 translates to a monthly mortgage payment of roughly $1875, leaving little room for profit unless expenses are managed efficiently. - **Investment Grade**: Given the tight market and high occupancy rates, the investment grade for this ZIP code is moderate. The demand for rental properties is strong, but the limited number of units priced at or below the FMR makes it challenging to attract voucher holders. Moreover, the high median income suggests that the area is not heavily reliant on subsidized housing, reducing the pool of potential Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Below-Market Units**: Investors should prioritize acquiring properties that can be rented at or below the FMR. For example, a two-bedroom unit priced at $1750-$1800 would be more attractive to voucher holders and could ensure steady occupancy. This approach requires careful selection of properties that are either undervalued or in need of renovation to bring down costs. 2. **Consider Multi-Family Properties**: Given the high occupancy rate, multi-family properties (such as duplexes or small apartment buildings) could offer better returns. These properties allow for economies of scale in terms of management and maintenance costs, potentially improving cash flow even if individual units are rented at the FMR. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the availability of Section 8 vouchers and help secure long-term tenants. This strategy can mitigate the risk of vacancy and ensure a stable income stream. #### Bottom Line For investors focused on Section 8 properties, ZIP code 76017 presents a challenging market. The tight rental conditions and high occupancy rates make it difficult to find units that can be rented at or below the FMR. Additionally, the high median income and strong demand for market-rate rentals suggest that the area is not heavily reliant on subsidized housing. **Recommendation**: **Hold** Investors should hold off on purchasing properties solely for Section 8 tenants in this ZIP code. Instead, they should focus on areas with more affordable housing options or consider diversifying their portfolio to include a mix of market-rate and subsidized units. If they already own properties in this area, maintaining them at or below the FMR can still be a viable strategy, but expansion into this market is not recommended given the current dynamics.

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.