Section 8 Fair Market Rent (FMR) for ZIP 77080 - 2027

Investment Score for ZIP 77080

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	$101,169	1.15%	B
2BR	$1,380	$170,623	0.81%	C
3BR	$1,860	$340,879	0.55%	F
4BR	$2,310	$437,816	0.53%	F
5BR	$2,680	$558,451	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77080 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77080 in Houston, TX, is set by HUD for 2026 as follows: - 0BR: $1180 - 1BR: $1220 - 2BR: $1450 (which represents 28.0% of the median household income) - 3BR: $1950 - 4BR: $2430 These figures represent the maximum rent that a Section 8 voucher holder can pay for housing in this area. However, the actual rental market in 77080 is significantly higher. For instance, the Zillow median price for a 2BR property is $174,244. This implies that the average monthly mortgage payment for a 2BR home would be much higher than the FMR, making it challenging for voucher holders to find suitable housing. Given the high price-to-FMR ratio of 10.0x, it is evident that the actual rents far exceed the FMR. This means that voucher holders are constrained in their ability to secure housing, particularly in the higher-end units. They might have to settle for lower-quality or smaller units, which could limit their options and potentially lead to dissatisfaction. #### Affordability & Renter Profile ZIP code 77080 has a population of 47,638, with 50.8% of residents being renters. The occupancy rate stands at 90.3%, indicating a relatively tight market where most available units are occupied. Given that the median household income is $62,134, the affordability of housing is a significant concern for many residents, especially those relying on Section 8 vouchers. The median income suggests that the majority of residents have limited financial resources. With the FMR for a 2BR unit being $1450, which is already 28.0% of the median income, any additional costs such as utilities or maintenance fees could make it even harder for residents to afford housing. This tight market and high rent-to-income ratio indicate that there is a strong demand for affordable housing, but supply is limited. #### Investor Angle From an investor perspective, the key question is whether the FMR provides a cash-flow positive scenario for rental properties. Based on the data, the FMR for a 2BR unit is $1450. However, the actual market rent is likely much higher given the price-to-FMR ratio of 10.0x. This implies that the typical market rent for a 2BR unit would be around $14,500 per month, which is clearly unrealistic. A more reasonable interpretation is that the average market rent for a 2BR unit is approximately $1450 * 10 = $14,500 annually, or about $1208 per month. This is still above the FMR, suggesting that landlords who accept Section 8 vouchers will face a lower rental income compared to the market rate. However, the investment grade of properties in this ZIP code remains favorable due to the high occupancy rate and strong demand for rental units. Despite the lower rents from Section 8 vouchers, the stability of tenants and the guaranteed rent payments can provide a steady cash flow. Additionally, the high rent-to-income ratio indicates that there is a significant gap between what residents can afford and what is available, creating opportunities for investors who can offer more affordable options. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring or developing 2BR and 3BR units that are priced close to the FMR. For example, a 2BR unit priced at $1450 per month would be ideal for Section 8 voucher holders and would ensure a steady stream of tenants. 2. **Utilize Section 8 Programs**: Given the high percentage of renters and the tight market, properties that accept Section 8 vouchers are likely to have a higher occupancy rate. Landlords who are willing to participate in these programs can benefit from stable tenancy and reduced vacancy rates. 3. **Consider Property Upgrades**: To attract both market-rate and Section 8 tenants, consider investing in property upgrades that enhance the living experience without drastically increasing costs. Improvements like energy-efficient appliances, modern kitchen fixtures, and updated bathrooms can increase the attractiveness of a unit while keeping it within the affordability range. #### Bottom Line For Section 8-focused investors, the ZIP code 77080 presents a mixed picture. While the actual rents are much higher than the FMR, the strong demand for affordable housing and the high occupancy rate suggest that there are opportunities to be seized. The recommendation is to **Buy**, but with a focus on properties that are priced close to the FMR and are well-suited for Section 8 voucher holders. This strategy can help investors tap into the stable and reliable tenant base while contributing to the affordability needs of the community.

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.