Section 8 Fair Market Rent (FMR) for ZIP 77015 - 2027

Investment Score for ZIP 77015

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	$1,100
1 Bedroom	$1,120
2 Bedrooms	$1,330
3 Bedrooms	$1,790
4 Bedrooms	$2,220
5 Bedrooms	$2,575
6 Bedrooms	$2,884
7 Bedrooms	$3,115
8 Bedrooms	$3,271

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	$1,120	$81,506	1.37%	A
2BR	$1,330	$136,432	0.97%	C
3BR	$1,790	$200,734	0.89%	C
4BR	$2,220	$252,744	0.88%	C
5BR	$2,575	$277,921	0.93%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77015 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77015 in Houston, Texas, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1400 per month. This figure represents 29.1% of the median household income in the area, which stands at $57,753. However, the actual rental market for two-bedroom units is significantly higher, with Zillow reporting a median price of $135,126. When converted to a monthly rent based on typical mortgage payments, this translates to approximately $1126 per month, assuming a 4.5% interest rate and a 30-year fixed mortgage. The price-to-FMR ratio is 8.0x, indicating that the actual market rents are much higher than the FMR. This means that Section 8 voucher holders face significant constraints when trying to find housing in this ZIP code. The actual rents are likely to exceed the FMR, making it difficult for voucher holders to secure housing without additional subsidies or finding landlords willing to accept lower rents. The voucher amount of $1400 may only cover a portion of the actual rent, leading to a shortfall that tenants must pay out-of-pocket. #### Affordability & Renter Profile ZIP code 77015 has a population of 58,415, with 46.8% of residents being renters. This indicates a substantial demand for rental properties. The occupancy rate is 90.6%, suggesting a relatively tight market where most available units are occupied. Given the high rent-to-income ratio and the fact that the median household income is $57,753, affordability is a significant issue for many residents. The FMR for a two-bedroom unit at $1400 is already a large portion of the median income, and the actual market rents are even higher. This implies that the majority of renters in this ZIP code are likely to be low-income individuals who struggle to afford housing. The high price-to-FMR ratio of 8.0x further underscores the difficulty in finding affordable housing options. #### Investor Angle From an investor's perspective, the ZIP code 77015 presents a mixed picture. The FMR for a two-bedroom unit is $1400, but the actual market rents are around $1126 per month when considering the median home price of $135,126. This suggests that if an investor buys a property at the median price, they would need to ensure that the monthly rent covers their mortgage payment, maintenance costs, and other expenses. Given the occupancy rate of 90.6%, there is a strong likelihood of securing tenants, but the challenge lies in finding those who can afford the higher rents or are willing to accept lower rents. The investment grade for this ZIP code would depend on the ability to manage these risks effectively. If an investor can find properties below the median price or negotiate lower rents with landlords, they might achieve cash-flow positivity. However, the high price-to-FMR ratio indicates that this will be challenging. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the median of $135,126. By purchasing homes at a lower price point, they can potentially offer rents closer to the FMR of $1400, thereby attracting Section 8 voucher holders. For instance, a property priced at $110,000 would result in a monthly mortgage payment of about $800, leaving room for a $1400 rent while still generating a profit. 2. **Negotiate with Landlords**: For existing rental properties, investors should consider negotiating with current landlords to reduce rents to the FMR level. This could involve offering to take over management responsibilities or providing incentives for landlords to accept lower rents. Given the high occupancy rate, there is a good chance that such negotiations could be successful. 3. **Consider Smaller Units**: Since the FMR for smaller units (like one-bedroom) is lower ($1180), investors might consider focusing on these types of properties. One-bedroom units are more affordable and may have a higher demand from single individuals or couples who cannot afford larger units. This could provide a better balance between affordability and cash flow. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77015 is to **Hold**. While there is a significant demand for rental properties, the high price-to-FMR ratio makes it challenging to achieve cash-flow positivity. Investors should carefully evaluate the potential to acquire properties at lower prices or manage existing properties in a way that aligns with the FMR. Without these strategies, the market conditions in 77015 are likely to result in financial strain for investors relying solely on Section 8 vouchers.

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.