DMR is in fact transmitted using FM. The proper inquiry is whether or not this type of encoding of the voice signal is permitted in FRS.
GMRS
(a) A GMRS transmitter must transmit only emission types A1D, F1D, G1D, H1D, J1D, R1D, A3E, F3E, G3E, H3E, J3E or R3E. A non-voice emission is limited to selective calling or tone-operated squelch tones to establish or continue voice communications. See § 95.181 (g) and (h).
See the problem?
K00F1D NXDN 6.25 kHz data (IDAS, NEXEDGE)
4K00F1E NXDN 6.25 kHz digital voice (IDAS, NEXEDGE)
4K00F1W NXDN 6.25 kHz digital voice and data (IDAS, NEXEDGE)
4K00F2D NXDN 6.25 kHz analog FM CW ID (IDAS, NEXEDGE)
8K10F1D P25 Phase I C4FM data
8K10F1E P25 Phase I C4FM voice
7K60FXD 2-slot DMR (Motorola MOTOTRBO) TDMA data
7K60FXE 2-slot DMR (Motorola MOTOTRBO) TDMA voice
And none of the above digital mode radio models are part 95 certified anyway.