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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $62,120 | 1.71% | A+ |
| 2BR | $1,260 | $108,163 | 1.16% | B |
| 3BR | $1,700 | $225,292 | 0.75% | D |
| 4BR | $2,110 | $260,876 | 0.81% | C |
| 5BR | $2,448 | $318,319 | 0.77% | D |
U.S. Census Bureau data (2024)
ZIP code 77074, located in Houston, TX, falls within the larger Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 77074 in fiscal year 2024 is set at $1,170. This figure is lower than the average market rent of $1,573, indicating that it offers rental rates that are more affordable compared to the broader metro area.
The median home value in ZIP 77074 is $215,586, which is also below the typical range seen in other ZIP codes within the same HUD Metro FMR Area. This suggests that property ownership costs are relatively low, making it an attractive option for both landlords and small-portfolio investors looking to enter the market at a lower price point.
The renter share in ZIP 77074 stands at 66.6%, significantly higher than the average for the Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. A high proportion of renters combined with lower-than-average home values and FMRs can indicate a concentration of subsidized housing, such as Section 8 properties, which often appeal to those seeking more affordable living options.
Based on these figures, ZIP 77074 appears to be a value pocket within the Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. It offers lower rental and property purchase prices relative to the metro average, while maintaining a high renter occupancy rate. This combination makes it particularly suitable for investors interested in leveraging the demand for affordable housing through Section 8 vouchers.
To summarize:
These factors collectively suggest that ZIP 77074 represents a value pocket within the larger metro area, offering opportunities for investors to benefit from the demand for affordable housing without the premium associated with higher-value neighborhoods.
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.