Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
U.S. Census Bureau data (2024)
The classification of ZIP 77004 in Houston, TX, hinges on the comparison between the Federal Market Rent (FMR) of $1,260 and the market rent of $1,972 for fiscal year 2024. Given the median home value of $355,391, the potential rental yield is substantial. Landlords and small-portfolio investors can expect a healthy cash flow from properties in this area, with an implied rental premium of approximately $712 above the FMR. This indicates a high-yield environment.
Regarding stability, the ZIP code shows a solid foundation with 61.8% of residents being renters. The average days on market (DOM) for homes stands at 58 days, which is relatively quick and suggests a consistent demand for housing. Additionally, the median household income of $71,199 provides further assurance that tenants can afford higher rents without significant risk. These factors collectively point towards a moderate-stability market.
To summarize, ZIP 77004 is best categorized as a high-yield/moderate-stability zone. While it offers attractive returns due to the substantial gap between market rent and FMR, the high percentage of renters and quick turnover times indicate a stable tenant base. This makes it a suitable investment for those seeking strong cash flow without the volatility associated with purely speculative markets.
Data Sources: FMR data from HUD (2027). 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.