Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
The economics of Section 8 housing in ZIP code 76202, located in Dallas County, Texas, revolve around the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1840. This figure represents the maximum amount that the housing authority will pay to landlords on behalf of eligible tenants.
A voucher holder's rent payment consists of three parts: the tenant's portion, the utility allowance, and the subsidy paid by the government. Typically, the tenant's portion is 30% of their adjusted income. If we assume an average adjusted income of $1500 for a tenant in this scenario, their portion would be $450. Utility allowances vary but generally cover a significant part of the tenant's energy costs, averaging around $150-$200 per month.
To illustrate, let's consider a tenant with an adjusted income of $1500. Their rent contribution would be $450, and if we apply a utility allowance of $175, the total covered by the tenant would be $625. Subtracting this from the SAFMR of $1840 leaves a subsidy of $1215 that the government would pay directly to the landlord.
This calculation reveals the reimbursement gap or surplus. In ZIP 76202, given the SAFMR and assuming typical tenant contributions and utility allowances, landlords can expect a reimbursement of approximately $1215 per month for a two-bedroom unit. However, since the local market rent data is currently unavailable, it's challenging to provide a precise comparison between the SAFMR and market rates. This gap or surplus depends on whether the local market rent is above or below the SAFMR of $1840.
In conclusion, landlords in ZIP 76202 should understand that the actual reimbursement they receive from a Section 8 voucher will be the difference between the SAFMR and the tenant's portion plus utility allowances. To ensure profitability, landlords must factor in this reimbursement when setting their rental prices for Section 8 units.
Data Sources: FMR data from HUD (2027).
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.