Location: Cooke County, 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 | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $423,128 | 0.33% | F |
U.S. Census Bureau data (2024)
The market analysis for ZIP code 76272 in Cooke County, TX, reveals several key points for Section 8 investors. The HUD Fair Market Rent (FMR) for the area is set at $1480 for FY 2024, which is significantly higher than the average market rent reported by the Census ACS, currently at $829. This disparity means that voucher tenants will generally cashflow positively at the HUD FMR rate, making them a desirable option for landlords and small-portfolio investors.
To further understand the rental market dynamics, we can look at the median home value in the area, which stands at $468,226. Using this figure, we can calculate the rent-to-price ratio. With an average market rent of $829, the annual rent would be approximately $10,000, leading to a rent-to-price ratio of roughly 2.14%. This indicates that the rental income generated is relatively low compared to the property values, suggesting that the primary investment angle in this area is likely to be appreciation rather than cashflow.
The vacancy rate and time on market for rental properties can also influence investment decisions. In ZIP 76272, the median Days on Market (DOM) is listed as N/A, and the percentage of listings that required a price cut is 0.2%. These figures suggest that the rental market is stable, with minimal competition and few properties needing to be discounted. However, the lack of specific DOM data means that there's limited insight into how quickly properties are leased, which could impact cashflow expectations.
In conclusion, the strongest investor angle in ZIP 76272 appears to be appreciation. The high HUD FMR compared to the market rent ensures positive cashflow for voucher tenants, while the stable rental market dynamics with low price-cut percentages support long-term investment stability. However, the potential for property value growth remains the most compelling reason to invest in this area.
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.