Section 8 Fair Market Rent (FMR) for ZIP 77044 - 2027

Investment Score for ZIP 77044

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	$1,480
1 Bedroom	$1,530
2 Bedrooms	$1,810
3 Bedrooms	$2,430
4 Bedrooms	$3,040
5 Bedrooms	$3,526
6 Bedrooms	$3,949
7 Bedrooms	$4,265
8 Bedrooms	$4,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,810	$170,165	1.06%	B
3BR	$2,430	$235,164	1.03%	B
4BR	$3,040	$338,067	0.9%	C
5BR	$3,526	$492,620	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77044 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77044 is set by HUD to ensure that low-income families can afford decent housing. The FMRs for 2026 are as follows: - 0BR: $1640 - 1BR: $1690 - 2BR: $2010 (25.4% of median income) - 3BR: $2700 - 4BR: $3370 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area may exceed these amounts, creating a constraint for voucher holders. For instance, the Zillow median price for a 2BR property is $172,367, which translates to a monthly mortgage payment significantly higher than the FMR. This suggests that landlords might charge more than the FMR, making it challenging for voucher holders to find affordable housing. #### Affordability & Renter Profile ZIP code 77044 has a population of 58,347, with 24.1% of residents being renters. The occupancy rate stands at 95.2%, indicating a high demand for rental properties. Given the median household income of $95,000, the 2BR FMR of $2010 represents 25.4% of the median income, which is relatively affordable for many households. However, the price-to-FMR ratio of 7.1x for 2BR properties suggests that the market is quite tight, with property values far exceeding the FMR. The renter profile in 77044 likely includes a mix of low-income families, young professionals, and students. With the high occupancy rate and the significant gap between property values and FMRs, it is clear that the market is undersupplied with affordable rental units. This makes it difficult for voucher holders to find suitable housing within their budget. #### Investor Angle From an investor perspective, the ZIP code 77044 presents a mixed picture. While the FMRs provide a guideline for affordable rents, the actual market conditions suggest that there is potential for higher rents. However, the challenge lies in finding a balance between market rates and the FMR limits imposed on voucher holders. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical costs associated with owning and renting out a property. Assuming a 2BR property with a Zillow median price of $172,367, the monthly mortgage payment (using a 30-year fixed-rate mortgage at 5%) would be approximately $895. Adding property taxes (at 1.5% of the home value), insurance ($100/month), and maintenance ($100/month), the total monthly cost would be around $1,150. At the FMR of $2010, the net cash flow would be positive by about $860 per month, assuming no vacancies. However, the investment grade depends on the ability to attract and retain tenants. Given the high occupancy rate and the limited supply of affordable rentals, there is a strong likelihood of demand outstripping supply. This could lead to a competitive advantage for landlords who offer properties within the FMR range, but also poses risks if the market becomes too saturated with higher-priced rentals. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring 2BR and 3BR units, as these are most likely to be rented by Section 8 voucher holders. The 2BR FMR of $2010 is particularly important, as it aligns closely with the median income of the area. Investing in properties priced around this level can ensure steady cash flow and a reliable tenant base. 2. **Consider Property Value Trends**: Given the high price-to-FMR ratio of 7.1x, it is crucial to monitor property value trends. If values continue to rise, the gap between FMR and market rates will widen, potentially reducing the number of available affordable units. Investors should look for opportunities to purchase properties below the Zillow median price to maximize their profit margins while remaining within the FMR guidelines. 3. **Engage with Local Real Estate Agencies**: To better understand the local rental market and the challenges faced by voucher holders, investors should engage with local real estate agencies and housing authorities. These organizations can provide valuable insights into the availability of affordable units and the preferences of voucher holders, helping investors make informed decisions. #### Bottom Line For Section 8-focused investors, ZIP code 77044 offers a buy recommendation. The high occupancy rate and limited supply of affordable rentals indicate strong demand for properties within the FMR range. By focusing on acquiring 2BR and 3BR units priced around $2010 and $2700 respectively, investors can ensure positive cash flow and a stable tenant base. However, careful monitoring of property value trends and engagement with local real estate agencies is essential to navigate the market effectively.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.