Section 8 Fair Market Rent (FMR) for ZIP 77028 - 2027

Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area

Investment Score for ZIP 77028

Monthly Rent (2BR)

$1,260

Median Price (2BR)

$121,859

1% Rule

1.03%

Annual Yield

12.41%

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	$1,040
1 Bedroom	$1,060
2 Bedrooms	$1,260
3 Bedrooms	$1,700
4 Bedrooms	$2,110
5 Bedrooms	$2,448
6 Bedrooms	$2,742
7 Bedrooms	$2,961
8 Bedrooms	$3,109

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	$1,060	$105,272	1.01%	B
2BR	$1,260	$121,859	1.03%	B
3BR	$1,700	$173,112	0.98%	C
4BR	$2,110	$201,086	1.05%	B
5BR	$2,448	$212,632	1.15%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

19,109

Median Household Income

$38,357

Housing Units

7,211

Renter Percentage

43.1%

Occupancy Rate

87.5%

Renter Occupied

2,721

To decide whether you should buy in ZIP code 77028 (Houston, TX) for Section 8 investment, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1,130 cover the debt service on a property valued at $162,619?

Yes: If your debt service is less than or equal to $1,130 per month, then the FMR can cover your costs. This means you can rely on Section 8 tenants to meet your financial obligations.
No: If your debt service exceeds $1,130 per month, the FMR will not be sufficient to cover your monthly expenses. You need a higher rental income to break even, which may not be feasible with Section 8 alone.

Step 2: Compare the FMR to the Zillow Observed Rent Index (ZORI) of $1,706.

ZORI is above FMR: The market rent is higher than the FMR, indicating that there's potential to earn more from non-Section 8 tenants. However, if you're strictly targeting Section 8 tenants, you must consider if the lower FMR is acceptable.
ZORI is at or below FMR: If the market rent is similar or lower than the FMR, you might find it easier to attract Section 8 tenants, but you could also face challenges in competing with other properties for higher-paying tenants.

Step 3: Evaluate the demand based on the percentage of renters and the days on market (DOM).

It depends: With 43.1% of residents being renters and an unspecified DOM, the demand for rental properties appears moderate. A high DOM would suggest difficulty in finding tenants, while a low DOM indicates strong demand. Since the DOM is not provided, you'll need to research further to determine if there's enough demand to support your investment. If the DOM is low, it's likely a good sign for demand; otherwise, it may indicate a saturated market.

Given the information, if your debt service is covered by the FMR of $1,130 and you're comfortable with the difference between the ZORI and FMR, then the investment in ZIP 77028 can be viable. However, you must ensure there's sufficient tenant demand, which requires additional investigation into the local rental market dynamics beyond the provided statistics.

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.