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 | $1,680 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,410 |
| 5 Bedrooms | $3,956 |
| 6 Bedrooms | $4,431 |
| 7 Bedrooms | $4,785 |
| 8 Bedrooms | $5,024 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,720 | $123,036 | 1.4% | A |
| 2BR | $2,040 | $227,807 | 0.9% | C |
| 3BR | $2,750 | $882,602 | 0.31% | F |
| 4BR | $3,410 | $1,337,981 | 0.25% | F |
| 5BR | $3,956 | $1,839,710 | 0.22% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77030, Houston, TX, within Harris County, operate under specific financial guidelines designed to ensure affordability for low-income tenants while providing fair compensation to landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1760. This figure is crucial because it is the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.
However, the local market rent for a similar two-bedroom unit is slightly lower at $1,675, according to ZORI (Zillow Observed Rent Index). This indicates that the SAFMR is above the average market rate in this ZIP code, which can be advantageous for landlords participating in the program.
A voucher holder is typically required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a voucher recipient in this area, the tenant's portion would be calculated as follows: if the tenant's adjusted income is $1,000 per month, they would pay $300 towards rent. The remaining amount would be covered by the voucher, up to the SAFMR limit of $1760. Thus, the voucher would pay $1460 in this scenario.
In addition to the rent subsidy, the voucher program also provides utility allowances. These allowances vary based on the size of the unit and the location but are generally designed to cover a reasonable estimate of monthly utilities. For a two-bedroom apartment in ZIP 77030, the utility allowance could add an additional $100-$200 to the total reimbursement, depending on the specifics of the voucher agreement.
This means that for a two-bedroom apartment, a landlord might receive a total reimbursement of around $1560-$1660, combining the rent subsidy and utility allowance. Given that the SAFMR is $1760, there is a potential surplus for landlords who participate in the program, especially when compared to the local market rent of $1,675.
To summarize, landlords in ZIP 77030 can expect to receive a total reimbursement of approximately $1560-$1660 for a two-bedroom apartment through the Section 8 voucher program. This amount includes the rent subsidy and utility allowances, and it exceeds the local market rent, leaving a surplus of about $115-$215 per month for landlords.
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.