The Investor Rental Takeover: Sarah Salgado on the Challenges Facing Forney’s Neighborhoods

The Investor Rental Takeover: Sarah Salgado on the Challenges Facing Forney’s Neighborhoods

InForney: You have been very vocal lately about the rise of investor-owned rentals in town. A recent federal report seems to back up your concerns. What is the situation looking like for Forney right now?

Sarah Salgado: Last week, the U.S. Government Accountability Office released a report showing that in recent years, the Dallas area has outpaced most of the rest of the country in the growth of institutional investor-owned rental properties. Unfortunately, much of that increase is happening in communities like ours, right here in Forney. This is a major problem. Investor-owned properties in Forney are a significant issue, and those whose neighborhoods have already been infiltrated and harmed know this all too well.

The Threat of Institutional Rentals

InForney: You recently mentioned a specific rental listing that really illustrated the threat you are talking about. What was it that stood out?

Sarah Salgado: I recently came across a rental listing that helps illustrate why this is one of the greatest threats currently facing our city. It was for a gorgeous, newly built home ready for its first tenants with five bedrooms. It was spacious and, according to the listing, located in a quiet neighborhood with friendly neighbors. But it was the last bullet point that stopped me in my tracks: "Vouchers accepted." This gorgeous new home will soon be a voucher-paid rental, going directly from new construction to subsidized Section 8 housing.

InForney: What does that mean for the people who already live in those neighborhoods?

Sarah Salgado: Those friendly neighbors—the ones who work so hard every month to afford their mortgages—will soon watch helplessly as their quiet neighborhood, the one they chose to raise their families in, devolves into a more dangerous and more transient community. To fully understand the scale of this problem, it helps to first understand how the voucher system works. Put simply, the Dallas Housing Authority, our urban, overwhelmed neighbor to the west, is sending many of its most struggling residents here to Forney.

Economic Disparities and Community Impact

InForney: So the Dallas Housing Authority is essentially paying these rents?

Sarah Salgado: It does so by providing them with generous vouchers to cover rent. That gorgeous new five-bedroom home, for example, could be eligible for over $4,100 in monthly support. These vouchers guarantee windfall profits for predatory investors, many of whom are out-of-state, who rent to those living off government subsidy while actual Forney homeowners struggle to afford the same level of home while working full-time professional jobs. That alone is enough of a problem, but it gets worse.

InForney: What kind of data are we seeing regarding the actual impact on the community?

Sarah Salgado: Data confirms what many of us already sense. Recent academic research shows that the conversion of owner-occupied homes to investor-owned rentals drives serious negative consequences, including significant declines in property values, lower property maintenance, reduced voter engagement, and material increases in property crime, violent crime, and drug-related offenses. Criminals know they are less likely to be caught in neighborhoods dominated by rental properties.

InForney: Why is there such a difference between a homeowner-heavy street and one full of rentals?

Sarah Salgado: Renters are simply less invested in where they live than homeowners, who have strong financial incentives to protect neighborhood quality. Homeowners provide "eyes on the street." They join neighborhood watch programs. They notice when something is wrong and they do something about it. Renters, through no fault of their own, rarely do the same.

A Cycle of Decline

InForney: There is also a financial toll here. How does that cycle begin?

Sarah Salgado: Investor-owned properties frequently go without basic maintenance. Yards go uncut, repairs go unmade, and the overall appearance of the neighborhood deteriorates. That deterioration directly drives down property values for every homeowner nearby. And then the snowball begins: higher crime discourages homebuyers; falling property values attract more investors; rising rental rates push incomes down. The cycle feeds itself, and it accelerates. A neighborhood that took years to build can unravel faster than anyone expects.

InForney: It sounds like a massive challenge. What is stopping the city from just banning these investors?

Sarah Salgado: We face some obstacles. Current Texas law limits what cities can do to restrict investor activity. We are also living with decisions made years ago that prioritized rooftop growth without fully accounting for the risks that growth could bring. And many of the rental properties causing harm are just beyond our city limits, outside the Council's legal authority.

Taking Action

InForney: Even with those limits, what are you and the Council doing to push back?

Sarah Salgado: There is still meaningful action we are taking and can take. We have dramatically increased enforcement efforts on rental properties, including ensuring every rental unit in Forney is properly registered. Over the past two years, we raised the annual registration fee from $75 to $300, which is one of the highest in the entire metroplex. We have also raised the late registration fee to $500 and increased both inspection and reinspection fees.

InForney: You also mentioned a new nuisance program. How does that work?

Sarah Salgado: We have launched a nuisance abatement program with real teeth. When a rental property generates police-level problems, the owner—no matter where in the country they happen to be—is required to come to Forney in person to meet with a police mediation team. They cannot send a representative. They must show up themselves.

InForney: Beyond fees and enforcement, what is the next step for the city?

Sarah Salgado: We also must continue to fully support our first responders, especially our police force, whose jobs get harder as these pressures increase. That means making sure they have the funding they need and taking every opportunity to make clear how much this community values and appreciates their service. Finally, we must explore every available avenue to challenge what the Dallas Housing Authority is doing, transplanting its own problems into our community without coordination, accountability, or regard for the families who call Forney home.

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