An analysis of 580 properties reveals the relationship between tenant credit quality and rental rates — and where the investment opportunities lie.
Each dot represents a Dallas multifamily property. The relationship is positive but weaker than expected — credit quality matters, but location and amenities matter just as much.
Properties with FICO scores between 660-680 and rents below $1,400 represent prime value-add opportunities. The tenant base has adequate credit to support post-renovation rent increases, while current rents suggest deferred maintenance or outdated amenities.
Understanding how properties cluster by credit quality and rent levels reveals where the market opportunities and risks concentrate.
18.5% of Dallas residents have FICO scores below 580. Properties serving this demographic face elevated collection challenges, with recommended bad debt reserves of 5-6% versus 3% for higher-credit properties.
Properties segmented by credit quality and rent positioning to identify risk-adjusted opportunities.
| FICO Range | Credit Tier | Stabilized Occupancy | Bad Debt Reserve | Renovation Risk | Property Count |
|---|---|---|---|---|---|
| 740+ | Excellent | 96% | 2% | Low | - |
| 670-739 | Good | 95% | 3% | Low-Moderate | - |
| 580-669 | Fair | 93% | 4% | Moderate | - |
| <580 | Poor | 90% | 5-6% | High | - |
Newer properties command both higher rents and attract higher-credit tenants, but the premium diminishes significantly after 2010.
Properties built after 2015 average FICO scores of 658 with rents of $1,987, compared to 1980s vintage at 573 FICO and $1,193 rents. This 85-point FICO gap and 67% rent premium defines the value-add opportunity.
Search and analyze individual properties in the Dallas market.
Properties with FICO 650+ and rents below $1,400 — ideal candidates for renovation and rent growth.
| Property | Address | Units | Year Built | FICO Score | In-Place Rent | Upside Potential |
|---|
Dallas's median renter income of $61,952 supports rents up to $1,549 under the 30% affordability rule. Properties with adequate tenant credit have clear runway for increases.
Properties at $1,000-$1,200 rents with FICO 670+ can likely support $1,500-$1,700 post-renovation — representing 25-40% rent growth potential.