Section 8 Fair Market Rent (FMR) for ZIP 77008 - 2027

Investment Score for ZIP 77008

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,490
1 Bedroom	$1,530
2 Bedrooms	$1,810
3 Bedrooms	$2,440
4 Bedrooms	$3,030
5 Bedrooms	$3,515
6 Bedrooms	$3,937
7 Bedrooms	$4,252
8 Bedrooms	$4,465

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,530	$347,533	0.44%	F
2BR	$1,810	$521,969	0.35%	F
3BR	$2,440	$567,382	0.43%	F
4BR	$3,030	$959,017	0.32%	F
5BR	$3,515	$1,370,888	0.26%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77008 (Houston, TX) #### Section 8 Voucher Dynamics In ZIP code 77008, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1870 per month. This figure represents 15.7% of the median household income of $143,229, indicating that it is relatively affordable for the average resident. However, the actual rental market in this area is significantly higher, with Zillow reporting a median price for a two-bedroom unit at $525,166. The price-to-FMR ratio is an astounding 23.4x, which means that the actual rent prices are much higher than the FMR. This disparity creates significant constraints for Section 8 voucher holders. The voucher program is designed to cover up to 40% of the FMR, meaning that a tenant with a voucher would be able to afford only about $748 per month towards rent for a two-bedroom unit. Given the actual rental prices, this amount is far below what landlords are likely charging. Consequently, voucher holders face limited options and may struggle to find suitable housing within their budget. #### Affordability & Renter Profile The population of ZIP 77008 is 41,645, with 40.9% of residents being renters. This indicates a substantial rental market, but the high occupancy rate of 93.1% suggests that the market is quite tight. With such a high occupancy rate, there is little room for additional units, and demand is likely outpacing supply. The median household income of $143,229 is considerably high, suggesting that most residents are financially stable and can afford higher rents. However, the 40.9% renter percentage implies that there is still a significant portion of the population relying on rental housing. Given the high median income and the fact that the actual rental prices are so much higher than the FMR, it is reasonable to conclude that the typical renter in this ZIP code is likely to be well-off and able to pay premium rents. This makes the market challenging for lower-income individuals who might rely on government assistance like Section 8 vouchers. #### Investor Angle From an investor perspective, the FMR figures provide a baseline for what the government will subsidize. However, the actual rental market is much higher, with a median price of $525,166 for a two-bedroom unit. To determine if investing in this ZIP code is cash-flow positive at FMR, we need to consider the potential rental income versus the costs of ownership. At FMR, a landlord could expect to receive $1870 per month for a two-bedroom unit. However, given the high median home value and the tight rental market, it is likely that landlords can charge significantly more than the FMR. For instance, a two-bedroom unit priced at the Zillow median of $525,166 would typically generate a monthly rent of around $2,100-$2,300 based on average rental yields in the Houston area. The investment grade in this ZIP code is strong due to the high median income and the tight rental market. However, the challenge lies in attracting tenants who can afford these high rents. For Section 8-focused investors, the cash flow would be negative since the voucher payment is only $748 per month, which is far below the actual rental market rates. #### Specific Actionable Insights 1. **Focus on Luxury Rentals**: Given the high median income and the tight market, investors should focus on luxury rentals. A two-bedroom unit priced at $2,100-$2,300 per month would align better with the actual rental market and provide a more sustainable cash flow. 2. **Consider Short-Term Rentals**: The high occupancy rate and median home values suggest that short-term rentals (like Airbnb) could be lucrative. Investors could potentially earn higher returns by converting properties into vacation rentals or long-term corporate housing. 3. **Diversify Tenant Base**: While targeting high-income renters is advisable, diversifying the tenant base to include a mix of market-rate and subsidized tenants could help manage risk. However, the Section 8 market is particularly challenging due to the low voucher payments relative to actual rents. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The extremely high actual rental prices compared to the FMR make it nearly impossible to attract tenants using Section 8 vouchers, leading to negative cash flow. Instead, investors should look for areas where the actual rental prices are closer to the FMR or where the median income is lower, making the voucher payments more competitive. However, for investors willing to target the high-end rental market or explore short-term rentals, this ZIP code offers a strong opportunity due to its high median income and tight rental market. The key is to avoid relying solely on Section 8 vouchers and instead focus on attracting tenants who can pay premium rents.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.