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 | $1,110 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $133,550 | 1.01% | B |
| 3BR | $1,820 | $206,532 | 0.88% | C |
| 4BR | $2,260 | $293,569 | 0.77% | D |
| 5BR | $2,622 | $629,560 | 0.42% | F |
U.S. Census Bureau data (2024)
196,089 In ZIP 77021 of Houston, TX, the median home value stands at $196,089, making it an attractive area for real estate investment. 58.2% Over half of the residents are renters, indicating a strong demand for rental properties. 1200 For fiscal year 2024, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1200, which aligns closely with the $1,762 market rent (ZORI), suggesting that properties priced around the FMR will be highly competitive. 45,574 The median income of $45,574 in the area reflects a modest but stable economic environment, where tenants can afford the market rents without straining their budgets. 0.2% With only a 0.2% price-cut share, landlords can expect to maintain their asking prices, as the market does not typically require significant reductions to attract tenants.
196,089 Given the median home value, landlords should consider investing in single-family homes or multi-unit buildings that can be rented out for long-term gains. 58.2% The high renter share of 58.2% supports the idea that rental properties will have a ready market. 1200 At the FMR of $1200, Section 8 housing vouchers can cover a substantial portion of the rent, making it possible for landlords to secure steady income streams from tenants who might otherwise struggle to find affordable housing. 1762 However, landlords should also be aware that the market rent is slightly higher at $1,762, which could present opportunities to charge premium rents for well-maintained properties.
45,574 With the median income being $45,574, the majority of residents are likely to qualify for Section 8 assistance, given that the program's eligibility criteria often align with local median incomes. 0.2% The low price-cut share suggests that the market is relatively stable, and landlords can expect consistent occupancy rates without having to frequently adjust their rents. 1200 The FMR of $1200 provides a benchmark for pricing properties to ensure they remain within reach of potential Section 8 participants.
196,089 In conclusion, ZIP 77021 offers a robust opportunity for real estate investors interested in Section 8 properties, with a median home value of $196,089, a strong renter base, and a stable market that supports both FMR and slightly higher market rents. 1200 The Section 8 program can effectively subsidize rents up to $1200, ensuring a reliable tenant pool and steady cash flow for landlords. 1762 While the market rent is higher at $1,762, landlords can still benefit from the program's coverage and the area's inherent demand for rental housing. 1200 Section 8 verdict: A solid investment option in ZIP 77021, Houston, TX.
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.