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 | $1,000 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,030 | $72,339 | 1.42% | A |
| 2BR | $1,220 | $110,283 | 1.11% | B |
| 3BR | $1,640 | $294,634 | 0.56% | F |
| 4BR | $2,040 | $354,685 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP 77035, located in Houston, TX, is an ideal candidate for a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1140, which is slightly above the market rent of $1,131. This positive spread ensures that landlords can rely on consistent, government-backed rental income, making it a stable addition to any investment portfolio.
The median home value in ZIP 77035 stands at $259,656, providing a solid foundation for property values. However, the key metric here is the rent-to-market ratio, where the FMR exceeds the market rent by $9 per unit. This margin allows landlords to secure a steady stream of income without the volatility associated with market fluctuations. In a portfolio strategy focused on cash flow, ZIP 77035 offers predictable returns due to the guaranteed nature of Section 8 payments.
While there is a 0.2% price-cut share and a 45-day Days on Market (DOM), these factors do not significantly impact the cash-flow anchor role. The low percentage of price cuts suggests that landlords rarely need to lower their rents to attract tenants, while the DOM indicates a reasonable time frame for finding tenants. Moreover, the 59.5% renter share and median income of $58,686 highlight a strong tenant demand and the ability to sustain rental payments, further reinforcing the stability of this ZIP code.
In conclusion, ZIP 77035 serves best as a cash-flow anchor in a Section 8 portfolio strategy. The slight premium of $9 over the market rent, combined with a high renter share and median income, ensures that landlords can count on reliable, government-supported income. This makes the ZIP code a valuable asset for those prioritizing financial security and predictability in their real estate investments.
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.