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 | $200,366 | 0.95% | C |
| 2BR | $2,250 | $403,717 | 0.56% | F |
| 3BR | $3,030 | $632,933 | 0.48% | F |
| 4BR | $3,760 | $1,035,658 | 0.36% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP 77006 in Houston, TX, reveal a market in motion, characterized by a delicate balance between supply and demand. The Fair Market Rent (FMR) for the area stands at $2040 for fiscal year 2024, while the market rent, measured by Zillow's ZORI, is currently at $1,620. This suggests that there is a slight downward pressure on rents, indicating that the supply of rental units might be slightly ahead of demand. However, the low price-cut share of 0.2% implies that landlords are not significantly discounting their rental prices to attract tenants, which could mean that the market remains competitive.
The days on market (DOM) for properties in ZIP 77006 is 94 days, which is relatively short compared to national averages, suggesting that homes are selling quickly once they hit the market. This quick turnover indicates strong buyer interest and a robust demand for homeownership in the area. The median home value of $567,477 further supports this, showing that the market is stable and valued.
A significant factor influencing the housing landscape is the high renter share of 65.4%. This substantial proportion of renters points to long-term housing pressure in the area. With such a large percentage of residents renting, it is likely that many individuals are seeking affordable housing options, leading to ongoing demand for rental properties. Landlords can expect continued interest in their rental offerings, but should also be prepared for competition from other property owners who may enter the market, attracted by the potential returns on investment.
In summary, ZIP 77006 presents a market where demand is strong, particularly for rentals, due to the high renter share. While there is some indication that supply slightly outpaces demand in the rental sector, the overall health of the market, evidenced by the median home value and quick sales, suggests a vibrant environment for both landlords and small-portfolio investors. The challenge will be in maintaining competitiveness without resorting to significant price cuts, as the market appears to favor those who can offer quality rental units at reasonable rates.
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.