Section 8 Fair Market Rent (FMR) for ZIP 76065 - 2027

Investment Score for ZIP 76065

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	$1,720
1 Bedroom	$1,780
2 Bedrooms	$2,090
3 Bedrooms	$2,630
4 Bedrooms	$3,350
5 Bedrooms	$3,886
6 Bedrooms	$4,352
7 Bedrooms	$4,700
8 Bedrooms	$4,935

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	$2,090	$279,087	0.75%	D
3BR	$2,630	$394,829	0.67%	D
4BR	$3,350	$491,728	0.68%	D
5BR	$3,886	$566,002	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 76065 (Midlothian, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 76065 in Midlothian, Texas, are as follows for 2026: - 0BR: $1770 - 1BR: $1840 - 2BR: $2160 - 3BR: $2720 - 4BR: $3460 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these figures to actual rental prices in the area reveals significant discrepancies. For instance, the Zillow median price for a 2BR property is $295,856, which translates into a monthly mortgage payment of approximately $1,700 assuming a 4.5% interest rate and a 30-year fixed mortgage. This is already close to the FMR for a 2BR unit ($2160), leaving little room for profit margins for landlords who rely on Section 8 vouchers. Moreover, the price-to-FMR ratio for a 2BR unit is 11.4x, indicating that the median home value is significantly higher than the FMR. This suggests that the actual rental market is likely to be much higher than the FMR, creating a substantial constraint for voucher holders. They may struggle to find units that accept their vouchers due to the high cost of living in the area. #### Affordability & Renter Profile The median household income in ZIP 76065 is $127,756, which is quite high compared to national averages. The 2BR FMR represents only 20.3% of the median income, suggesting that the typical resident can afford housing costs well above the FMR. With only 18.3% of the population being renters, the market is relatively tight for those seeking rentals. The occupancy rate of 96.8% further supports this conclusion, indicating that most available units are quickly occupied. Given the high median income and the relatively low percentage of renters, it is likely that the typical renter in this area has a higher-than-average income themselves. This demographic may include young professionals, families transitioning between homes, or individuals who prefer renting over buying. The tight market means that there is a strong demand for rental properties, but the supply is limited, making it challenging for voucher holders to find affordable units. #### Investor Angle From an investor perspective, the ZIP code 76065 presents mixed opportunities. The high median income and tight rental market suggest strong demand for rental properties. However, the high price-to-FMR ratio indicates that the actual rental prices are far above the FMR, making it difficult to achieve positive cash flow solely based on FMR. To illustrate, let's consider a 2BR unit. At the FMR of $2160, the potential rental income is modest compared to the median home value of $295,856. Assuming a conservative 1% annual property tax rate, the yearly property tax would be around $2,959, or $246 per month. Additionally, maintenance and other operational costs would need to be covered. Given these factors, achieving positive cash flow purely through FMR-based rents would be challenging unless the investor can secure a lower purchase price or find ways to reduce operational costs significantly. In terms of investment grade, the ZIP code 76065 would likely be rated as moderate to low for Section 8-focused investors. The high cost of entry and the limited number of units that would accept Section 8 vouchers due to the tight market and high rental prices make it less attractive for this type of investment. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might find better opportunities by focusing on smaller units such as 0BR or 1BR apartments. These units have FMRs of $1770 and $1840 respectively, which are lower than the 2BR FMR. Although the median income is high, some residents might still seek more affordable options, especially if they are looking for short-term rentals or transitional housing. 2. **Consider Non-Traditional Properties**: Investors could explore non-traditional properties like mobile homes or manufactured homes, which often have lower purchase prices and may fit within the FMR limits more easily. For example, a mobile home that accepts a 2BR voucher at $2160 could provide a more manageable investment opportunity compared to traditional single-family homes. 3. **Seek Government Subsidies**: Given the high cost of living, investors might benefit from exploring government subsidies beyond just Section 8 vouchers. Programs like Low-Income Housing Tax Credits (LIHTC) or other local incentives could help offset the higher purchase and operational costs associated with investing in this ZIP code. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 76065 is to **Skip**. The high cost of living, tight rental market, and limited number of units that would accept Section 8 vouchers make it a challenging environment to achieve positive cash flow. While the area has a strong economy and high median income, these factors do not align well with the goals of investors relying on Section 8 vouchers for rental income. Instead, investors should look for areas with lower price-to-FMR ratios and a higher proportion of renters to ensure better alignment with their investment strategy.

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.