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 | $1,090 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $132,659 | 1% | C |
| 3BR | $1,780 | $193,984 | 0.92% | C |
| 4BR | $2,210 | $211,037 | 1.05% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77032, located in Houston, Texas, within Harris County, are defined by specific financial metrics that landlords need to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1260. This figure represents the maximum amount that a Section 8 voucher will cover for rent in this specific ZIP code.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), run higher at $1428. This discrepancy between the SAFMR and the actual market rates can influence a landlord's decision on whether to participate in the program.
A Section 8 voucher does not cover the entire rent; it covers the difference between the tenant’s portion and the SAFMR. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. If the tenant's portion of the rent is less than the SAFMR, the government makes up the difference. However, if the tenant's portion plus any applicable utility allowances exceeds the SAFMR, then the landlord only receives the SAFMR amount.
To illustrate, let's assume a tenant has an adjusted income of $1,800 per month. Their required contribution towards rent would be 30% of this income, which amounts to $540. With utility allowances factored in, say $150, the total contribution from the tenant would be $690. In this case, the voucher would cover the remaining $570, bringing the total reimbursement to $1260.
This reimbursement model means that landlords must ensure their rental properties meet certain quality standards to qualify for the program, and they should also consider the administrative requirements and potential delays in receiving payments. The typical reimbursement gap for a two-bedroom unit in ZIP 77032 is $168, calculated as the difference between the local market rent ($1428) and the SAFMR ($1260).
Landlords should weigh this gap against the benefits of having a steady stream of tenants who are vetted and whose rent is guaranteed, albeit at a slightly lower rate than the market might otherwise offer. It's important to note that while the SAFMR provides a cap, the actual reimbursement can vary based on the tenant's income and utility needs.
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.