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 | $1,090 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $131,560 | 1% | B |
| 3BR | $1,780 | $295,201 | 0.6% | D |
| 4BR | $2,210 | $360,154 | 0.61% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 77092 in Houston, TX reveals a clear disparity between the HUD Fair Market Rent (FMR) and the actual market rents. For fiscal year 2024, the HUD FMR for ZIP 77092 is set at $1,180. In contrast, the market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,606. This significant gap suggests that voucher tenants will only cashflow at the FMR level if they occupy premium units. The median home value in this area is $279,703, which translates to a rent-to-price ratio of approximately 0.57%, indicating that rental income alone may not cover the full mortgage payment on an average-priced home.
The dynamics of the rent-versus-buy market do not significantly impact the analysis due to the lack of relevant data on the median days on market (DOM) and the percentage of homes requiring price cuts. However, it is important to note that the strong rental market, evidenced by the high ZORI, provides a stable income source for landlords and small-portfolio investors.
The strongest investor angle in ZIP 77092 is stability, given the robust rental market and the consistent demand for housing supported by Section 8 vouchers.
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.