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 | $1,200 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $167,754 | 0.87% | C |
| 3BR | $1,970 | $292,479 | 0.67% | D |
| 4BR | $2,440 | $341,736 | 0.71% | D |
| 5BR | $2,830 | $378,347 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 77062 is situated in a desirable part of Houston, TX, characterized by a moderately sized population of 25,523 residents. In this neighborhood, only 24.4% of the residents are renters, indicating a predominantly owner-occupied area. The median household income here is a robust $103,889, placing it well above the national average and suggesting a relatively affluent community. The median home value stands at $312,499, which reflects the strong real estate market and the high demand for housing in this region.
Turning to the economic landscape for rental properties, the Fair Market Rent (FMR) for ZIP 77062 as of the fiscal year 2024 is set at $1,300. This figure contrasts with the actual market rent, known as Zillow's Observed Rental Index (ZORI), which is $1,466. This difference suggests that the rental market in this ZIP code is slightly more expensive than the government's benchmark for affordable housing, which could be seen as both a challenge and an opportunity for Section 8 investors.
Given these conditions, ZIP 77062 is best suited for hands-on value-add buyers rather than hands-off operators. The higher market rents indicate potential for property appreciation and better returns on investment if the properties can be improved and marketed effectively to non-voucher tenants. However, the presence of a Section 8 program allows for a steady stream of income from government-subsidized rentals, which can be particularly useful for stabilizing cash flows while implementing value-add strategies.
To conclude, while the percentage of renters is low, the high median income and home values suggest that there is a significant market for higher-end rental units. For hands-on investors willing to take on the challenge of improving and managing properties, ZIP 77062 offers a promising opportunity to capitalize on the existing demand and potentially command higher rents than the FMR.
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.