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 | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $161,542 | 0.7% | D |
| 3BR | $1,520 | $185,470 | 0.82% | C |
| 4BR | $1,890 | $224,273 | 0.84% | C |
| 5BR | $2,192 | $252,708 | 0.87% | C |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 77087 in Houston, Texas, for fiscal year 2024 is set at $1,000. This figure represents the maximum amount that voucher holders can pay towards their rent under the Section 8 program. In contrast, the market rent, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1,424. This means that voucher tenants will only cashflow in premium units, where the rent is closer to the FMR rather than the market rate.
To understand the economic dynamics of this area, it's important to consider the median home value, which is $182,196. Using this, we can calculate a rough rent-to-price ratio. Dividing the market rent ($1,424) by the median home value ($182,196) gives us approximately 0.78%. This ratio suggests that rental income in this area is relatively low compared to the value of property, making it less attractive purely from a cashflow perspective.
The median Days on Market (DOM) is not applicable (N/A) and the share of listings that experienced a price cut is 0.3%. These figures indicate that the real estate market in ZIP 77087 is stable, with homes selling quickly and few needing price adjustments. This stability can be a significant factor for investors considering long-term strategies in the area.
In conclusion, the strongest angle for Section 8 investors in ZIP 77087 is likely stability. While cashflow is limited to premium units, the quick sale times and low need for price cuts suggest a robust and predictable market environment for property investment.
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.