Section 8 Fair Market Rent (FMR) for ZIP 77063 - 2027

Investment Score for ZIP 77063

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	$1,330
1 Bedroom	$1,360
2 Bedrooms	$1,610
3 Bedrooms	$2,170
4 Bedrooms	$2,690
5 Bedrooms	$3,120
6 Bedrooms	$3,494
7 Bedrooms	$3,774
8 Bedrooms	$3,963

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,360	$94,512	1.44%	A
2BR	$1,610	$141,065	1.14%	B
3BR	$2,170	$357,012	0.61%	D
4BR	$2,690	$601,998	0.45%	F
5BR	$3,120	$1,360,854	0.23%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77063 (Houston, TX) #### Section 8 Voucher Dynamics In ZIP code 77063, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1720 per month. This figure represents 34.9% of the median household income of $59,113, which indicates that it is a relatively affordable rent for the average resident. However, the actual rental market in this area is significantly higher than the FMR. The Zillow median price for a two-bedroom property is $142,753, translating to a price-to-FMR ratio of 6.9x. This suggests that the typical rent for a two-bedroom unit is likely much higher than the FMR, potentially around $11,790 annually ($1720 x 6.9). Therefore, tenants using Section 8 vouchers would face significant constraints in finding units that meet the FMR guidelines. #### Affordability & Renter Profile ZIP code 77063 has a high renter population of 76%, indicating that the majority of residents are renters rather than homeowners. The occupancy rate of 88.3% suggests that the housing market is relatively tight, with most available units being occupied. Given the median household income of $59,113, many residents rely on the affordability provided by Section 8 vouchers. However, the high price-to-FMR ratio implies that the market is not particularly affordable for those without financial assistance. The median income is not sufficient to cover the actual rent prices without subsidies, making it challenging for low-income families to find suitable housing. #### Investor Angle From an investor perspective, the FMR guidelines present a mixed picture. While the FMR for a two-bedroom unit is $1720, the actual rental market prices are approximately 6.9 times higher, suggesting that properties rented at FMR levels would likely be cash-flow negative. Investors who aim to participate in the Section 8 program must accept lower rents compared to the market rate, which could impact their profitability. The investment grade in this ZIP code would be considered low due to the mismatch between FMR and actual rental prices, leading to potential financial losses if investors do not receive additional incentives or support. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1450, which is still below the market rate but closer to what might be achievable. This strategy can help maximize cash flow while adhering to the FMR guidelines. 2. **Seek Additional Incentives**: Since renting at FMR levels is likely to result in cash-flow negativity, investors should explore additional incentives and programs that can offset these losses. For example, the Low-Income Housing Tax Credit (LIHTC) program can provide tax benefits that make the investment more viable. Additionally, local government programs or partnerships might offer further financial support. #### Bottom Line For investors focused specifically on Section 8 properties, the recommendation for ZIP code 77063 is to **skip**. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow while complying with FMR guidelines. Unless there are significant additional incentives or subsidies available, investing in this ZIP code under the Section 8 program would likely result in financial losses. Investors should look for areas where the FMR is closer to the actual rental market prices or where there are more supportive government programs.

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.