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 | $1,140 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $125,193 | 1.1% | B |
| 3BR | $1,860 | $142,109 | 1.31% | A |
| 4BR | $2,310 | $180,991 | 1.28% | A |
| 5BR | $2,680 | $201,618 | 1.33% | A |
U.S. Census Bureau data (2024)
The ZIP code 77033 in Houston, TX, is predominantly a renter-heavy area, with 41.0% of the population renting their homes. This indicates a significant portion of the 29,154 residents rely on rental properties, suggesting a robust demand for housing vouchers such as those provided through the Section 8 program. Given the median household income of $38,071, typical market rents of $1,701 represent a substantial portion of the average resident's earnings.
To quantify the impact of these rents on local incomes, we find that the $1,701 average rent constitutes approximately 44.7% of the median household income. This is notably higher than the Fair Market Rent (FMR) figure of $1,220 set for FY 2024, which represents a more affordable threshold for housing costs. The discrepancy between the market rent and the FMR highlights the financial strain many renters face in meeting their housing expenses.
Landlords operating in ZIP 77033 can anticipate a tenant pool heavily reliant on government assistance programs like Section 8. These tenants will likely have a lower income level, with many households earning at or below the median income. They will be seeking affordable housing options that align closely with the FMR guidelines. Therefore, landlords who offer units priced around or slightly above the FMR of $1,220 will attract a steady stream of qualified applicants.
In summary, ZIP 77033 is characterized by a high concentration of renters and a strong demand for housing vouchers. With typical market rents consuming nearly half of the median income, there is a clear need for more affordable housing options. Landlords should prepare for a tenant base that includes many individuals and families utilizing Section 8 vouchers to secure housing, emphasizing the importance of pricing competitively to remain attractive in this market.
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.