Section 8 Fair Market Rent (FMR) for ZIP 77082 - 2027

Investment Score for ZIP 77082

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	$1,290
1 Bedroom	$1,320
2 Bedrooms	$1,570
3 Bedrooms	$2,120
4 Bedrooms	$2,620
5 Bedrooms	$3,039
6 Bedrooms	$3,404
7 Bedrooms	$3,676
8 Bedrooms	$3,860

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
2BR	$1,570	$156,621	1%	B
3BR	$2,120	$240,035	0.88%	C
4BR	$2,620	$323,974	0.81%	C
5BR	$3,039	$646,795	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77082 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77082 in Houston, Texas, is set by HUD for the year 2026. The FMRs for different unit sizes are as follows: - 0BR: $1340 - 1BR: $1390 - 2BR: $1650 (31.7% of median income) - 3BR: $2220 - 4BR: $2770 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it is important to note that these figures do not necessarily reflect the actual rents charged in the market. In many cases, landlords may charge more than the FMR, which can create financial strain for voucher holders who must cover the difference out-of-pocket. For instance, the FMR for a 2BR unit is $1650, but this represents only 31.7% of the median household income ($62,455). This means that a significant portion of the renter population, particularly those relying on Section 8 vouchers, would struggle to afford additional costs beyond what their voucher covers. #### Affordability & Renter Profile ZIP code 77082 has a high percentage of renters, with 63.6% of the population being tenants. This indicates a strong demand for rental properties in the area. Additionally, the occupancy rate stands at 90.5%, suggesting that the market is relatively tight, with most available units being occupied. Given the median household income of $62,455, affordability is a critical issue for many residents. The FMR for a 2BR unit at $1650 is a substantial portion of the median income, leaving little room for other expenses. The high renter percentage and occupancy rate indicate that there is a significant need for affordable housing options in the area. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR levels. To evaluate this, we need to consider the typical property values and potential rental yields. According to Zillow, the median value for a 2BR property in ZIP code 77082 is $159,738. With a price-to-FMR ratio of 8.1x, this suggests that the purchase price of a property is significantly higher than the rent it can command under the FMR guidelines. For example, a 2BR unit priced at $159,738 would have an annualized cost of around $15,974, assuming a conservative 10% cap rate. At an FMR of $1650 per month, the annual rent would be $19,800. However, investors must also account for operating expenses, property taxes, and mortgage payments, which could easily erode the potential cash flow. Given the high price-to-FMR ratio, the investment grade for this ZIP code would likely be considered low for Section 8-focused investors. The disparity between the purchase price and the rent that can be charged under FMR guidelines makes it challenging to achieve positive cash flow without significant subsidies or rent increases above the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might find better returns by focusing on smaller units such as 0BR or 1BR apartments. These units typically have lower purchase prices relative to their FMRs, potentially leading to more favorable cash flows. For instance, a 1BR unit with an FMR of $1390 might be more financially viable compared to a 2BR or larger unit. 2. **Consider Property Value Appreciation**: While the current price-to-FMR ratio is unfavorable, investors should consider the potential for property value appreciation over time. If property values continue to rise, the price-to-FMR ratio could become more favorable, even if rents remain stable. Monitoring local real estate trends and economic indicators could provide insights into future investment opportunities. 3. **Evaluate Operating Costs**: Before investing in properties in ZIP code 77082, it is crucial to thoroughly assess the operating costs, including property taxes, maintenance, and insurance. These costs can significantly impact the net cash flow, and understanding them is essential for making informed investment decisions. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77082 would be to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow without charging rents above the FMR, which would limit the pool of eligible tenants. Additionally, the high proportion of renters and the occupancy rate suggest that there is limited upside in terms of finding new tenants, especially if they are restricted to charging FMR rates. However, investors looking for long-term appreciation and willing to manage properties with a focus on smaller units might find some opportunities. Nonetheless, the overall market dynamics in ZIP code 77082 present significant challenges for Section 8-focused investments, and caution is advised.

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.