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 | $1,280 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $151,197 | 1.03% | B |
| 3BR | $2,090 | $215,130 | 0.97% | C |
| 4BR | $2,590 | $279,590 | 0.93% | C |
| 5BR | $3,004 | $318,333 | 0.94% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 77066 does not align favorably with the Federal guidelines. The Fair Market Rent (FMR) set at $1510 for fiscal year 2024 exceeds the actual market rent, which stands at $1,260 according to ZORI. This discrepancy means that landlords aiming to adhere to HUD's Section 8 program may find it challenging to secure tenants willing to pay the higher FMR rate.
Acquisition in ZIP 77066 is relatively affordable. With a median home value of $244,688, purchasing property is within reach for many investors. However, the lack of data on days on market (DOM) and the low percentage of homes experiencing price cuts (0.3%) suggest a stable market where homes do not sit unsold for long periods. This stability can be advantageous for investors looking to enter the market without facing prolonged vacancies.
Tenant demand in ZIP 77066 is moderate. The area has a population of 39,311, with 26.5% of residents being renters. While this indicates a significant portion of the population is actively seeking rental housing, the overall demand is tempered by the size of the local population. Investors should consider the broader economic conditions and employment rates to gauge the sustainability of this demand.
In conclusion, while ZIP 77066 offers an affordable entry point for property acquisition with a median home value of $244,688, the mismatch between the high FMR of $1510 and the lower market rent of $1,260 presents a challenge for landlords participating in the Section 8 program. The moderate tenant demand, represented by a 26.5% renter share, is promising but requires careful consideration of the local economic environment to ensure long-term viability. Investors must weigh these factors carefully to determine if the area meets their financial objectives.
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.