bang for your buck

These are the 10 most affordable ZIP codes for Dallas-area renters

Rents are cheaper in some parts of the city than others.

Photo by Jenifer McNeil Baker for Greystar

Buying a home in Dallas is difficult enough to afford these days, and doubly so if you're already paying high rent on an apartment or a house. But there are 10 Dallas-Fort Worth ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes to rent in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs using the Zillow Observed Rent Index. ZIP codes where the average annual rental costs required the lowest percentage of median household income were considered the "most affordable."

Two Dallas suburbs and their ZIP codes specifically stood out in CashNetUSA's ranking of the most affordable ZIPs for renters across the Metroplex: 75013 in Allen (No. 1) and 75033 in Frisco (No. 2).

According to the study's findings, the average monthly cost of a rental in Allen comes out to $1,716.45, and the median annual income of an Allen household is $145,220. Analysts then calculated that the annual rent of a home in the Allen ZIP code only takes up 14.18 percent of a household's median income, which is the No. 1 lowest in Dallas-Fort Worth.

Allen was recently named one of the best small cities to live in, with a scorching hot real estate market to match its thriving popularity and growth.

In Frisco's 75033 ZIP, annual rent costs only represent 14.89 percent of a household's median annual income. The area – which encompasses the Meadow Hill Estates, Preston Highlands North, Christie Ranch, Newman Village, Shaddock Creek Estates, and Collin neighborhoods – has a median household income of $149,525, and average rent costs add up to $1,855.49, according to the study.

Meanwhile, Dallas' own 75214 ZIP code ranked No. 8 in the metro-wide ranking of most affordable ZIPs for renters. This area consists of several established Dallas neighborhoods, including Northeast Dallas, Wilshire Heights, Lakewood, Lakewood Hills, Junius Heights, and Munger Place.

The median annual income for a household in 75214 comes out to $104,583, and the average rental costs $1,669.40 per month. That means annual rent payments account for 19.15 percent of a household's median income, according to the study.

The seven other ZIPs that make up the top 10 most affordable ZIP codes for renters in Dallas-Fort Worth include:

No. 3 – 76248 in Keller
No. 4 – 76085 in Weatherford
No. 5 – 76262 in Roanoke
No. 6 – 75078 in Prosper
No. 7 – 75048 in Sachse
No. 9 – 75077 in Highland Village
No. 10 – 75093 in Plano

Top ZIP codes for renters in the U.S.
CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, San Antonio's 78248 ZIP ranked as the No. 4 most affordable ZIP code for renters in the U.S., and the No. 1 most affordable ZIP code statewide.

Two Houston-area ZIP codes – 77401 and 77094 – ranked No. 9 and No. 12 nationally, while Allen's 75013 ZIP code fell two spots behind to claim the No. 14 spot.

frisco suburbs zip codes rent

Prep to Protest

Texas homeowners have one month to protest and lower their property taxes

Jessie Street home front Austin tour of remodeled homes

Photo courtesy of Austin NARI Tour of Remodeled Homes

Here's how Texans can correct their property taxes when they feel their home appraisal is too high.

Texans who are unhappy with their home appraisal this tax season have a chance to do something about it if they get the process going in the next month. The deadline for most people to protest their property valuation — thus lowering their property tax — in Dallas County is May 15.

If you haven't done it before, don't worry: There are steps to follow online and companies that do it for you at no cost unless you save money.

Why protest?
Texans pay the 7th highest property taxes in the country, according to personal finance website WalletHub. If your county has overappraised your home, you are paying more than you need to in property taxes.

Protests are especially important and easy for people who closed on their homes in the past year, because the value of the property upon sale is accepted as the true value of the property. This assumes that if the property were worth more, it would have sold for more. The more recently the home sold, the more likely it is that homeowners haven't meaningfully altered the property since the purchase.

Submitting a protest is free, and there is almost no risk in doing so. The Appraisal Review Board is prohibited from raising the property value in a hearing. Homeowners may decide it's not worth their time if their appraisal barely changes and they don't save a significant amount of money.

When to submit
Most homeowners whose home has increased in value according to the county should have received a Notice of Appraisal in the mail by now. It tells them how much the county believes their home is worth this year. To check online, homeowners can search for their property at dallascad.org.

The deadline to submit a protest is May 15 or 30 days after the notice is mailed — whichever comes later. However, the notice may have been lost or delivered to the wrong place, so it is important to check before May 15 just in case. Notices are also sent later for property owners whose primary residence is somewhere else.

There are lots of ways homeowners can try to prove their home value has not increased, or even that it has decreased due to damage on the property. Whether the evidence is photos of damage or "comps" around the neighborhood — comparing the home's value to others of a similar quality in the same area — homeowners submitting their claim themselves should be prepared to meet with an appraiser or even a review board.

Set it and forget it
Homeowners who don't want to deal with the paperwork, phone call, or hearing can hire service to protest on their behalf. For them, savings are essentially passive income; the service uses data from past years and the surrounding neighborhood to argue the client's case. It is easy to find a service that works on a contingency fee, so the cost is only a portion of the successful savings. Ownwell is a popular choice, but it's not the only one.

Finally, homeowners should also make sure they're not leaving money on the table by applying for a homestead exemption. This is available to people who own the homes they live in, as opposed to people who own homes and rent them out to others. It subtracts $140,000 from the total valuation of the home before applying the tax rate.

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