Section 8 Fair Market Rent (FMR) for ZIP 77072 - 2027

Investment Score for ZIP 77072

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	$1,140
1 Bedroom	$1,160
2 Bedrooms	$1,380
3 Bedrooms	$1,860
4 Bedrooms	$2,310
5 Bedrooms	$2,680
6 Bedrooms	$3,002
7 Bedrooms	$3,242
8 Bedrooms	$3,404

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	$1,160	$85,084	1.36%	A
2BR	$1,380	$121,567	1.14%	B
3BR	$1,860	$209,778	0.89%	C
4BR	$2,310	$240,391	0.96%	C
5BR	$2,680	$292,617	0.92%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77072 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures provided by the U.S. Department of Housing and Urban Development (HUD) for ZIP code 77072 in Houston, Texas, indicate that the rental market is quite expensive relative to the incomes of many residents. For a two-bedroom unit, the FMR is set at $1,440 per month. However, the Zillow median price for a two-bedroom home in this area is $124,414, which translates into a rental cost that is approximately 7.2 times higher than the FMR when considering typical mortgage payments and property management costs. This suggests that actual rents in the area are significantly above the FMR levels. For voucher holders, the primary constraint is that their monthly rent cannot exceed the FMR. In ZIP 77072, this means that a voucher holder can only afford a two-bedroom apartment if the rent is $1,440 or less. Given the high actual rents, finding properties that fall within these limits could be challenging. Additionally, the occupancy rate of 90.2% indicates a relatively tight market where competition for affordable units is likely high. #### Affordability & Renter Profile ZIP code 77072 has a population of 57,108, with 54.8% of residents being renters. The median household income in this area is $51,070, meaning that a significant portion of the population relies on rental housing. The affordability of housing is a critical issue, especially for those who depend on Section 8 vouchers. The FMR for a two-bedroom unit represents 33.8% of the median household income, which is a substantial portion. This indicates that even without the voucher, renting a two-bedroom unit would be a considerable financial burden for many residents. With the FMR cap, it becomes even more challenging for low-income families to find suitable housing. Given the high percentage of renters and the tight occupancy rate, it is likely that the market is undersupplied with affordable units. This creates a situation where landlords have the upper hand, potentially leading to higher rents and fewer options for voucher holders. #### Investor Angle From an investor perspective, the key question is whether investing in this ZIP code would be financially viable given the FMR constraints. The FMR for a two-bedroom unit is $1,440, but the actual median rent is much higher, around $124,414 based on Zillow data. This implies that the average rental income from a two-bedroom unit would be significantly higher than the FMR. However, for Section 8-focused investors, the maximum allowable rent is capped at the FMR. Therefore, the potential cash flow would be limited to $1,440 per month for a two-bedroom unit. To determine if this is cash-flow positive, we need to consider the typical expenses associated with owning and managing a rental property, including mortgage payments, maintenance, insurance, and property taxes. Assuming a conservative estimate of $1,000 per month in expenses (which includes a mortgage payment of around $700), the net cash flow would be $440 per month. This is positive, but the margin is slim, indicating that the investment would need to be carefully managed to ensure profitability. In terms of investment grade, the ZIP code 77072 appears to be moderately attractive due to the high demand for rental housing. However, the tight FMR caps and the challenge of finding properties that meet these criteria could make it a risky investment for those solely relying on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR-to-income ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1,210, which is still a significant portion of the median income but might be easier to find within the FMR limit. Additionally, the demand for smaller units is likely higher due to the affordability concerns. 2. **Consider Mixed-Income Developments**: Investors could explore developing mixed-income communities where some units are rented at market rates and others are rented at FMR rates. This approach allows for a balance between maximizing returns and providing affordable housing options. For example, renting half of the units at market rates and the other half at FMR rates could help offset the lower cash flow from the FMR units. 3. **Utilize Government Programs**: Investors should look into government programs that provide additional subsidies or incentives for affordable housing. These programs can help bridge the gap between the FMR and the actual cost of maintaining a property, thereby improving the overall cash flow and viability of the investment. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77072 is to **Hold**. While there is a strong demand for rental housing, the high actual rents compared to the FMR create significant challenges in finding properties that are both affordable and profitable. Investors should carefully evaluate the potential for smaller units and consider mixed-income developments to mitigate risks. Additionally, leveraging government programs can enhance the feasibility of such investments. However, the slim margins suggest that this ZIP code is not ideal for purely profit-driven investments without additional support mechanisms.

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.