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 | $1,310 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,660 |
| 5 Bedrooms | $3,086 |
| 6 Bedrooms | $3,456 |
| 7 Bedrooms | $3,732 |
| 8 Bedrooms | $3,919 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,590 | $218,798 | 0.73% | D |
| 3BR | $2,140 | $257,858 | 0.83% | C |
| 4BR | $2,660 | $332,810 | 0.8% | D |
| 5BR | $3,086 | $421,686 | 0.73% | D |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 77065 in Houston, Texas, for fiscal year 2024 is set at $1,460. This figure represents the benchmark rental rate for Section 8 voucher holders in the area. In comparison, the actual market rent, as measured by the Zillow Observed Rental Index (ZORI), stands at $1,349. Given this data, landlords can expect voucher tenants to cover their costs at the FMR level, providing a positive cash flow scenario. The difference of $111 between the FMR and the market rent suggests that voucher tenants will generally cashflow properties at the FMR without needing to rely on premium units, although there might be some margin for property improvements or higher-quality units.
To further analyze the investment potential, consider the median home value in ZIP 77065, which is $288,748. Using the HUD FMR of $1,460, the annual rent would be approximately $17,520. This yields a rent-to-price ratio of about 0.0061, indicating that the rental income constitutes roughly 0.61% of the median home value. This low ratio suggests that the area leans more towards buying over renting from a financial perspective, but it does not necessarily impact the viability of rental investments.
The median Days on Market (DOM) for the area is 35 days, and the share of listings that required a price cut is 0.3%. These figures point to a relatively stable and efficient housing market, where properties are sold quickly and without significant price adjustments. For Section 8 investors, these metrics imply a steady demand for rental properties, ensuring that once a unit is occupied, it is likely to remain so for a considerable period.
In summary, the strongest angle for investors in ZIP 77065 is cash flow. With voucher rates exceeding market rents, landlords can secure a reliable source of income that covers expenses and provides a modest profit margin, making it an attractive option for those seeking consistent returns on their investment properties.
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.