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 | $1,530 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,860 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $3,110 |
| 5 Bedrooms | $3,608 |
| 6 Bedrooms | $4,041 |
| 7 Bedrooms | $4,364 |
| 8 Bedrooms | $4,582 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $133,538 | 1.18% | B |
| 2BR | $1,860 | $185,117 | 1% | B |
| 3BR | $2,510 | $309,250 | 0.81% | C |
| 4BR | $3,110 | $921,412 | 0.34% | F |
| 5BR | $3,608 | $1,249,407 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 77079, located in Houston, TX, represents a strategic opportunity within a Section 8 portfolio. With a Fair Market Rent (FMR) of $1630 for fiscal year 2024 and a median home value of $725,148, this area stands out as a cash-flow anchor.
The spread between the FMR and the market rent of $1,489 indicates that landlords can secure stable rental income through Section 8 vouchers. Despite the high median home value, the lower market rent suggests that the area is affordable for low-income tenants who rely on Section 8 assistance. This makes it an ideal location for generating consistent cash flow.
The high median income of $101,995 in ZIP 77079 supports the notion that it is a desirable area for both renters and homeowners. However, the 51.7% renter share and the relatively low price-cut share of 0.2% indicate that the market is competitive and that landlords must maintain their properties to avoid price reductions. The 20-day Days on Market (DOM) further underscores the strong demand for rentals in this area.
In conclusion, ZIP 77079 is best suited as a cash-flow anchor within a Section 8 portfolio due to its favorable FMR-to-market rent ratio and high median income, which ensures a steady stream of rental income 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.