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 | $1,360 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $203,963 | 0.79% | D |
| 3BR | $2,120 | $297,032 | 0.71% | D |
| 4BR | $2,660 | $362,576 | 0.73% | D |
| 5BR | $3,086 | $438,670 | 0.7% | D |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 76120 (Fort Worth, TX) for Section 8 purposes, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1490 cover the debt service on a $319,610 property?
Yes. The FMR of $1490 is designed to ensure that Section 8 payments cover the cost of renting a modest home. To assess whether this amount clears the debt service, calculate the monthly mortgage payment for a $319,610 property. Assuming a 30-year fixed-rate mortgage at 4%, the monthly payment would be approximately $1537. Given that the FMR is slightly below this figure, it does not fully cover the debt service. However, landlords can consider other factors such as property taxes and insurance, which can be reimbursed under Section 8, to make up the difference.
No. If the FMR of $1490 does not cover the total monthly debt service, including mortgage, property taxes, and insurance, then purchasing a property in this ZIP code for Section 8 would not be financially viable without additional subsidies or income sources.
It Depends. Landlords need to evaluate their specific financial situation, including potential tax benefits and any additional rental income they might receive from non-Section 8 tenants. If the total debt service is higher than $1490, landlords must weigh the risks and rewards of relying on Section 8 alone versus diversifying their tenant base.
Step 2: Is the market rent of $1,201 (ZORI) above, at, or below the FMR?
Above. This scenario is unlikely given the ZORI of $1,201 is below the FMR of $1490. If the market rent were above the FMR, it would indicate that Section 8 rates are not competitive, making it difficult to attract tenants solely based on Section 8 vouchers.
At or Below. Since the ZORI is below the FMR, landlords can expect that Section 8 vouchers will cover a significant portion of the market rent. This makes the ZIP code attractive for landlords seeking stable, government-backed rental income.
Step 3: Are 47.2% of residents renters, and do the days on the market (DOM) indicate sufficient demand?
Yes. With 47.2% of residents being renters, there is a notable demand for rental properties. Although the DOM data is not available, the high percentage of renters suggests that finding tenants, including those with Section 8 vouchers, should be feasible.
No. If the percentage of renters was significantly lower, or if the DOM indicated long periods before properties were rented, this would suggest a lack of demand. However, with 47.2% renters, demand appears to be strong.
It Depends. The lack of DOM data means that while the percentage of renters is high, landlords cannot definitively gauge how quickly properties are rented. Additional research into local real estate trends and vacancy rates would provide a clearer picture.
In conclusion, ZIP 76120 presents a mixed scenario for Section 8 investment. While the FMR is close to covering debt service, the market rent being below the FMR and the strong rental demand suggest that it could still be a viable option for landlords willing to consider additional income sources or subsidies.
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.