Section 8 Fair Market Rent (FMR) for ZIP 77064 - 2027

Investment Score for ZIP 77064

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	$1,350
1 Bedroom	$1,380
2 Bedrooms	$1,640
3 Bedrooms	$2,210
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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
2BR	$1,640	$187,855	0.87%	C
3BR	$2,210	$245,069	0.9%	C
4BR	$2,740	$318,116	0.86%	C
5BR	$3,178	$400,943	0.79%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77064 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77064 is set by HUD for the year 2026. The FMRs are as follows: - 0BR: $1420 - 1BR: $1460 - 2BR: $1740 - 3BR: $2340 - 4BR: $2920 These FMRs represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area might be higher, which could pose challenges for voucher holders. For instance, the FMR for a 2BR unit is $1740, but it only represents 25.6% of the median household income ($81,658). This means that even if a tenant has a voucher, they would still need to contribute a significant portion of their income towards rent, potentially making it difficult for them to afford other necessities. #### Affordability & Renter Profile ZIP code 77064 has a population of 49,591, with 35.7% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate stands at 94.2%, suggesting that the market is relatively tight, with few vacant units available. Given the high occupancy rate and the significant percentage of renters, there is likely strong competition for affordable housing options. The median household income in the area is $81,658, which places many residents in a middle-income bracket. However, the price-to-FMR ratio for a 2BR unit is 9.1x, indicating that the median home value ($189,592) is significantly higher than the FMR. This suggests that the market is not particularly affordable for low-income renters who rely on vouchers. #### Investor Angle From an investor perspective, the key question is whether the FMR levels allow for positive cash flow when purchasing properties in this ZIP code. With a Zillow median price for a 2BR unit at $189,592, and an FMR of $1740 per month, the potential monthly rental income is $1740. Assuming a conservative mortgage rate of 5% and a down payment of 20%, the monthly mortgage payment for a $189,592 property would be approximately $1050. This leaves a potential net cash flow of about $690 per month, before accounting for maintenance, taxes, and insurance costs. Given the high price-to-FMR ratio, the investment grade for this ZIP code would be considered moderate to low. While the demand for rental properties is high, the cost of entry into the market is also high relative to the rental income that can be generated. This makes it challenging for investors to achieve positive cash flow without significant subsidies or other forms of financial 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 0BR or 1BR apartments. These units have lower FMRs ($1420 and $1460 respectively), which might make it easier to achieve positive cash flow. Additionally, smaller units tend to have lower purchase prices, reducing the overall financial burden. 2. **Seek Government Subsidies**: Due to the high cost of housing relative to FMRs, investors should explore government programs and subsidies that can help offset the difference between the actual rent and the FMR. Programs like the Low-Income Housing Tax Credit (LIHTC) or other local incentives might provide additional financial benefits that can improve the investment’s profitability. 3. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale and potentially higher returns. A multi-family property with multiple units under the same roof can spread out fixed costs like utilities and maintenance, making it more financially viable to operate at FMR levels. #### Bottom Line For Section 8-focused investors, the ZIP code 77064 presents a mixed picture. On one hand, there is a significant demand for rental properties, with a high occupancy rate and a substantial number of renters. On the other hand, the high price-to-FMR ratio and the relatively high cost of entry into the market make it challenging to achieve positive cash flow. Therefore, the recommendation for investors would be to **Skip** this ZIP code unless they can secure significant subsidies or focus on smaller units where the FMR is closer to the actual rent. In summary, while 77064 has a robust rental market, the high cost of housing and the constraints imposed by FMR levels make it less attractive for investors seeking to generate positive cash flow through Section 8 vouchers.

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.