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 | $133,540 | 0.79% | D |
| 2BR | $1,260 | $166,290 | 0.76% | D |
| 3BR | $1,700 | $194,197 | 0.88% | C |
| 4BR | $2,110 | $222,960 | 0.95% | C |
| 5BR | $2,448 | $247,698 | 0.99% | C |
U.S. Census Bureau data (2024)
ZIP 77076, located in Houston, TX, is an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1160, which is significantly lower than the market rent of $1858. This creates a spread of $698 per unit, making it highly attractive for landlords who can secure tenants through the Section 8 program. By anchoring a portion of your portfolio in ZIP 77076, you ensure stable rental income that is guaranteed by the government, reducing financial risk.
The median home value in ZIP 77076 is $189,914, which is relatively low compared to other areas in the Houston metropolitan region. This makes property acquisition more feasible for small-portfolio investors looking to enter the market without a substantial capital investment. Furthermore, the low FMR ensures that the majority of your tenants will be able to afford the rent, leading to higher occupancy rates and less turnover, which in turn reduces vacancy costs and maintenance expenses.
While the appreciation potential in ZIP 77076 is limited, with a 0.2% price-cut share and N/A-day Days on Market (DOM), the focus should be on the steady cash flow rather than rapid property value increases. The 46.6% renter share indicates a significant portion of the population relies on renting, and the median income of $42,522 suggests a need for affordable housing options, aligning well with the Section 8 program.
In summary, ZIP 77076 serves as a reliable cash-flow anchor due to its favorable spread between FMR and market rents, ensuring a consistent and predictable revenue stream for landlords and small-portfolio investors.
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.