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 | $1,390 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,820 |
| 5 Bedrooms | $3,271 |
| 6 Bedrooms | $3,664 |
| 7 Bedrooms | $3,957 |
| 8 Bedrooms | $4,155 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,420 | $89,248 | 1.59% | A+ |
| 2BR | $1,690 | $264,070 | 0.64% | D |
| 3BR | $2,280 | $425,114 | 0.54% | F |
| 4BR | $2,820 | $1,022,022 | 0.28% | F |
| 5BR | $3,271 | $1,519,877 | 0.22% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 77025, located in Houston, TX, within Harris County, operate under specific parameters that affect both landlords and tenants. For a two-bedroom apartment in this ZIP code, the Section 8 payment standard, known as SAFMR (Small Area Fair Market Rent), for fiscal year 2024 is set at $1,540. This figure is unique to ZIP 77025 and reflects the local rental market conditions more accurately than broader metro or county-level rates.
In contrast, the local market rent for a similar unit, measured by ZORI (Zillow Observed Rent Index), stands at $1,329. This discrepancy between the SAFMR and the actual market rent can influence the decision-making process for landlords considering participation in the Section 8 program.
To understand what a voucher actually pays, consider the following breakdown:
Based on these figures, the total monthly reimbursement to the landlord would be calculated as follows:
Total reimbursement = Tenant contribution + Government subsidy - Utility allowance
= $300 + $1,540 - $100
= $1,740
This calculation shows that the landlord could potentially receive more than the market rent for a two-bedroom unit. However, it’s important to note that the government subsidy is capped at the SAFMR, which in this case is $1,540. Therefore, if the tenant’s portion plus any utility allowance exceeds the SAFMR, the landlord will only receive up to the SAFMR amount.
Given the SAFMR of $1,540 and the local market rent of $1,329, there is a surplus for landlords participating in Section 8 in ZIP 77025. The difference, or surplus, is $211 per month. This means landlords can benefit from a higher guaranteed rent compared to the average market rent, making Section 8 a viable option for those looking to secure steady income without the risk of vacancy.
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.