Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,850 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,760 |
| 5 Bedrooms | $4,362 |
| 6 Bedrooms | $4,885 |
| 7 Bedrooms | $5,276 |
| 8 Bedrooms | $5,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,900 | $208,047 | 0.91% | C |
| 2BR | $2,250 | $311,564 | 0.72% | D |
| 3BR | $3,030 | $449,183 | 0.67% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 77002 in Houston, TX, reveals a unique balance between yield and stability that could be particularly appealing to landlords and small-portfolio investors.
On the yield axis, the potential for high returns is evident. The Fair Market Rent (FMR) for ZIP 77002 is set at $2040 for fiscal year 2024, which is notably higher than the market rent of $1,879. This indicates that properties participating in the Section 8 program can command rents above the typical market rate, thus offering a premium yield for investors. Additionally, the average home value of $252,998 suggests that there is significant equity in these properties, making them attractive for long-term investment strategies.
Moving to the stability axis, the figures paint a picture of a relatively stable rental environment. With 91.8% of residents being renters, there is a strong demand for rental housing in this area. While the number of days on the market (DOM) is not available, the median household income of $86,394 implies that tenants have a reasonable ability to pay their rent consistently. However, it's important to note that the high percentage of renters might also indicate a competitive market, which could affect vacancy rates and the speed of tenant turnover.
Given these metrics, ZIP 77002 leans towards a steady-cashflow zone. The slightly elevated FMR compared to market rent supports a modest yield advantage, while the high percentage of renters and decent income levels contribute to a stable cash flow. However, the absence of DOM data leaves some uncertainty about the speed and ease of filling vacancies, which is crucial for assessing overall stability. Despite this gap, the combination of a robust rental demand and a yield that exceeds market rates makes 77002 a solid choice for those seeking reliable returns from their investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.