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 | $1,310 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $200,552 | 0.79% | D |
| 3BR | $2,000 | $312,927 | 0.64% | D |
| 4BR | $2,540 | $439,012 | 0.58% | F |
| 5BR | $2,946 | $546,452 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 76205 (Denton, TX) presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value of $363,643, the area is moderately priced, offering opportunities for those seeking stable investments. The recent trend shows that only 0.3% of listings have reduced their prices, indicating a resilient market where sellers maintain confidence in their asking prices. This resilience suggests that there is little pressure on property values to decline, supporting a steady pricing environment.
The median days on market (DOM) being listed as N/A could imply either a very fast-moving market or a lack of sufficient data points to establish a reliable average. However, given the low percentage of price reductions, it's reasonable to infer that homes in Denton are selling relatively quickly, which supports the notion of strong buyer demand. In such an environment, landlords can expect to maintain or even slightly increase rental rates without significantly impacting occupancy levels.
On the rental side, the Federal Market Rent (FMR) for ZIP 76205 in fiscal year 2024 is set at $1,600, while the actual market rent (ZORI) currently stands at $1,278. This gap indicates potential for rental rate increases, aligning with the broader expectation of rising costs. Landlords should consider gradually adjusting rents to approach the FMR level, ensuring they remain competitive yet capitalize on the upward trend in housing costs.
For long-term investors, the setup in Denton signals a moderate appreciation thesis. The combination of stable home values, low price reduction rates, and increasing rental costs suggests that the area will likely see gradual growth rather than explosive gains. Investors should focus on properties that offer good potential for rental income growth and modest capital appreciation, rather than expecting significant jumps in property values.
In summary, ZIP 76205 offers a balanced real estate market. Home values are unlikely to experience substantial declines, and the rental market shows promise for growth towards the FMR benchmark. Long-term investors should position themselves for moderate returns, leveraging the current conditions to maximize rental income while benefiting from steady capital appreciation.
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.