The relative γ -decay probabilities of the 162 Dy to 161 Dy and 162 Dy to 164 Dy residual nuclei, produced using light-ion-induced direct reactions, were measured as a function of excitation energy using the CACTUS array at the Oslo Cyclotron Laboratory. The external surrogate ratio method (SRM) was used to convert these relative γ -decay probabilities into the 161 Dy(n,γ ) cross section in an equivalent neutron energy range of 130-560 keV. The directly measured 161 Dy(n,γ ) cross section, obtained from the Evaluated Nuclear Data Files (ENDF/B-VII.0), was compared to the experimentally determined surrogate 161 Dy(n,γ ) cross section obtained using compound-nucleus pairs with both similar ( 162 Dy to 164 Dy) and dissimilar ( 162 Dy to 161 Dy) nuclear structures. A γ -ray energy threshold was identified, based upon pairing gap parameters, that provides a first-order correction to the statistical γ -ray tagging approach and improves the agreement between the surrogate cross-section data and the evaluated result.