Location: Fort Worth-Arlington, TX | Metro: Dallas, 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 | $1,850 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,870 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,870 | $325,533 | 0.88% | C |
| 4BR | $3,610 | $444,025 | 0.81% | C |
U.S. Census Bureau data (2024)
In ZIP code 76084, the financial landscape for Section 8 properties versus market-rate rentals presents a clear contrast in potential returns. To analyze this, we'll look at the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $1370 annually for fiscal year 2024, and compare it to the Zillow Observed Rental Index (ZORI), currently at $2,009 per month.
The median home value in this area stands at $387,053. Using these figures, we can calculate the gross yield for both scenarios. For the Section 8 scenario, the annualized rental income would be $1370 * 12 = $16,440. This translates to a gross yield of approximately 4.2% when divided by the median home value ($16,440 / $387,053).
On the other hand, if we consider the market-rate rental scenario using the ZORI figure, the annualized rental income would be $2,009 * 12 = $24,108. The gross yield here is significantly higher at about 6.2% ($24,108 / $387,053).
The difference between these yields highlights the trade-offs involved in accepting Section 8 tenants versus market-rate renters. At 4.2%, the gross yield for Section 8 properties is notably lower compared to the 6.2% yield from market-rate rentals. Given that only 12.2% of residents in ZIP 76084 are renters, it's evident that the demand for rental properties, including those under the Section 8 program, is limited.
Moreover, the lack of data on days on market (DOM) suggests either a stable rental market or insufficient transaction volume to provide meaningful insights. However, considering the lower renter density, it's likely that finding tenants willing to pay market rates is more straightforward than securing Section 8 vouchers, especially since voucher holders often face longer wait times and limited availability.
In conclusion, while Section 8 properties offer a steady income stream with less risk of vacancy, they come with a lower gross yield. Market-rate rentals, despite facing a more competitive environment due to the relatively low renter density, present a better opportunity for higher returns. Landlords and small-portfolio investors should weigh these factors carefully based on their investment goals and risk tolerance.
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.