Location: Dallas, 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 | $1,220 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $214,423 | 0.69% | D |
| 3BR | $1,860 | $290,667 | 0.64% | D |
| 4BR | $2,370 | $351,148 | 0.67% | D |
U.S. Census Bureau data (2024)
1560 is the Fair Market Rent (FMR) for ZIP code 76201 in Denton, TX, for fiscal year 2024, setting a clear benchmark for rental properties in the area. 1470 represents the Zillow Observed Rent Index (ZORI), indicating the average market rent is slightly below the FMR, suggesting a competitive rental environment. 278823 is the median home value, reflecting a relatively stable housing market where property values are significant but not excessively high. 81.0% is the renter share, highlighting a strong demand for rental properties, driven by a large percentage of residents preferring to lease rather than buy. 39982 is the median income, which is lower than the national average, but still supports the local rental market given the current ZORI. N/A for days on market (DOM) suggests either a very active market or limited data, making it difficult to assess how quickly properties are typically rented out. 0.2% is the price-cut share, showing that very few landlords need to reduce their rental rates to attract tenants, indicating a robust rental market without significant pressure to lower prices.
In ZIP code 76201, the rental market is well-supported by a high proportion of renters and stable property values, despite a lower-than-average median income. The close alignment between the FMR and ZORI points to a balanced market, where rental prices are reasonable and reflect the economic conditions. With such a low price-cut share, it's evident that landlords can maintain their rental rates effectively, appealing to both landlords and small-portfolio investors looking for steady returns.
The verdict on Section 8 in Denton, TX (ZIP 76201) is positive, given the supportive renter demographics and the manageable gap between FMR and market rents, ensuring a viable option for those seeking guaranteed rental income through the program.
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.