Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,820 |
| 1 Bedroom | $1,860 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
U.S. Census Bureau data (2024)
The classification of ZIP 77056 in Houston, TX, on the yield and stability axes reveals a balanced investment opportunity. The Fair Market Rent (FMR) for the area is set at $2,040 for fiscal year 2024, which is notably higher than the market rent of $1,707. This suggests a potential for higher rental yields when properties are leased at FMR rates. However, the median home value of $668,196 indicates that the cost basis for acquiring properties in this area is substantial.
On the stability axis, ZIP 77056 shows a strong foundation. With 66.5% of residents being renters, there is a robust demand for rental housing. Additionally, the average Days on Market (DOM) of 54 days suggests that properties are quickly occupied, reducing vacancy risks. The median household income of $93,499 further supports the stability, as it implies tenants have the financial capability to meet their rent obligations.
Based on these figures, ZIP 77056 leans towards a steady-cashflow zone. While the disparity between the FMR and market rent rates points to the possibility of achieving above-average yields, the relatively high DOM and significant home values temper expectations of rapid property flips. Instead, the high percentage of renters and solid median income indicate a reliable tenant base that can sustain consistent rental income over time. This makes it a suitable choice for landlords and small-portfolio investors looking for stable returns rather than quick capital gains.
Data Sources: FMR data from HUD (2027). 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.