Section 8 Fair Market Rent (FMR) for ZIP 76651 - 2027

Location: Dallas, TX | Metro: Dallas, TX HUD Metro FMR Area

Investment Score for ZIP 76651

N/A

Monthly Rent (2BR)

$1,350

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,110
1 Bedroom	$1,150
2 Bedrooms	$1,350
3 Bedrooms	$1,700
4 Bedrooms	$2,160
5 Bedrooms	$2,506
6 Bedrooms	$2,807
7 Bedrooms	$3,032
8 Bedrooms	$3,184

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,700	$268,690	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,984

Median Household Income

$67,500

Housing Units

1,487

Renter Percentage

29.6%

Occupancy Rate

88.6%

Renter Occupied

390

When considering whether to purchase a property in ZIP code 76651 for Section 8 investment, follow this decision tree:

1) Does FMR $1300 clear debt service on a $254,806 property?

No. To determine if the Fair Market Rent (FMR) of $1300 can cover the debt service on a property valued at $254,806, we must first calculate the expected monthly mortgage payment. Assuming a typical interest rate of 4% and a 30-year fixed mortgage, the monthly payment would be approximately $1,245. This figure exceeds the FMR of $1300, indicating that the rent received from a Section 8 tenant would not fully cover the mortgage payment.

2) Is market rent $1,188 (Census ACS) above, at, or below FMR?

Market rent is below FMR. The Census American Community Survey (ACS) reports an average market rent of $1,188, which is lower than the FMR of $1300. This suggests that Section 8 rents are higher than what the market typically offers, potentially making Section 8 properties more attractive to landlords in this area.

3) Are 29.6% renters + N/A-day DOM enough demand?

It depends. With 29.6% of the population being renters, there is a notable rental demand in ZIP 76651. However, the lack of data on days on market (DOM) makes it challenging to assess the speed at which rental units are occupied. A high DOM could indicate a slower rental market, while a low DOM would suggest strong demand. Without specific DOM data, it's difficult to make a definitive judgment on demand levels.

If the FMR does not cover debt service, then the answer is generally no. In ZIP 76651, the FMR of $1300 does not sufficiently cover the expected debt service of $1,245 on a property valued at $254,806.
If market rent is below FMR, then Section 8 properties may still be attractive due to higher guaranteed rent payments. The market rent of $1,188 is indeed below the FMR, making Section 8 units more financially viable compared to market-rate rentals.
If demand is strong, but DOM data is missing, then the decision hinges on other factors such as vacancy rates and local economic conditions. With 29.6% of residents renting, there is significant demand, but without DOM data, landlords must consider additional metrics to evaluate the rental market's health.

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.