Section 8 Fair Market Rent (FMR) for ZIP 77073 - 2027

Investment Score for ZIP 77073

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	$1,180
1 Bedroom	$1,200
2 Bedrooms	$1,430
3 Bedrooms	$1,930
4 Bedrooms	$2,390
5 Bedrooms	$2,772
6 Bedrooms	$3,105
7 Bedrooms	$3,353
8 Bedrooms	$3,521

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,930	$218,776	0.88%	C
4BR	$2,390	$246,522	0.97%	C
5BR	$2,772	$278,554	1%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77073, Houston, TX #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77073 in 2026 is set at the following rates: - 0BR: $1220 - 1BR: $1260 - 2BR: $1500 - 3BR: $2020 - 4BR: $2520 Without recent Zillow data, it's challenging to provide a direct comparison between FMR and actual market rents. However, we can infer that the FMR rates are likely reflective of the local rental market conditions. For voucher holders, the primary constraint is that their rent cannot exceed the FMR rate. This means that if the actual market rent for a 2BR unit is higher than $1500, voucher holders would be unable to use their vouchers to cover the full cost of rent. #### Affordability & Renter Profile ZIP code 77073 has a population of 46,084, with 35.1% of households being renters. The median household income is $78,592, indicating a relatively affluent area. Given that a 2BR unit costs $1500, which represents 22.9% of the median income, it suggests that renting is generally affordable for most residents. However, the high occupancy rate of 92.4% indicates a tight market where demand exceeds supply, making it difficult for renters to find available units. #### Investor Angle From an investor perspective, the key question is whether properties rented at FMR levels can generate positive cash flow. To assess this, we need to consider the average property expenses, such as mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 30% of the rent going towards these expenses, a 2BR unit at $1500 would leave approximately $1050 in potential monthly cash flow. Given the lack of recent Zillow data, we can't determine the exact vacancy rates or the average rental prices. However, based on the occupancy rate and the fact that the FMR is set at levels that are affordable for many residents, it's reasonable to assume that properties rented at FMR could achieve a steady occupancy and positive cash flow. The investment grade for this ZIP code would likely be considered moderate to high, given the strong demand and relatively stable rental market. The high median income and low percentage of rent relative to income suggest that tenants are likely to have a good track record of paying rent on time. #### Specific Actionable Insights 1. **Focus on 2BR Units**: Since 2BR units represent a significant portion of the rental market and are affordable for most residents, investing in 2BR properties could yield the best returns. At $1500 per month, the rent is within the FMR guidelines and still leaves room for positive cash flow after covering expenses. 2. **Consider 3BR Units for Families**: With a median income of $78,592, families might be able to afford a 3BR unit priced at $2020 per month. This price point is slightly above the 25% threshold of median income but remains manageable for many households. Investing in 3BR units could attract family tenants who are looking for larger living spaces. 3. **Prepare for Competition**: Given the high occupancy rate of 92.4%, competition for rental properties is likely to be fierce. Investors should ensure their properties are well-maintained and offer amenities that appeal to potential tenants, such as parking, laundry facilities, and modern appliances. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77073 is to **Buy**. The combination of a high median income, a significant renter population, and a tight rental market makes this ZIP code attractive. Properties rented at FMR levels, particularly 2BR and 3BR units, are likely to generate positive cash flow and maintain steady occupancy. However, investors should be prepared for competition and ensure their properties meet the needs of the local tenant base.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.