Section 8 Fair Market Rent (FMR) for ZIP 77093 - 2027

Investment Score for ZIP 77093

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	$1,000
1 Bedroom	$1,020
2 Bedrooms	$1,210
3 Bedrooms	$1,630
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

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	$1,020	$126,380	0.81%	C
2BR	$1,210	$137,538	0.88%	C
3BR	$1,630	$173,373	0.94%	C
4BR	$2,020	$203,661	0.99%	C
5BR	$2,343	$236,318	0.99%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77093 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 77093 in Houston, TX, are set by HUD for 2026. For a two-bedroom unit, the FMR is $1260. However, the actual rent prices can be significantly higher. The Zillow median price for a two-bedroom rental property is $140,958, which translates to a monthly rent of approximately $1175 based on a standard mortgage calculation. This implies that the actual rent prices are slightly above the FMR, but not drastically so. HUD's FMR is designed to ensure that housing is affordable for low-income families, but it does not always reflect the true market conditions. In 77093, the FMR for a two-bedroom unit is only 32.3% of the median household income, indicating that voucher holders have limited options. They must find units that do not exceed the FMR, which can be challenging given the local market dynamics. #### Affordability & Renter Profile ZIP code 77093 has a population of 46,407, with 43.8% of residents being renters. This suggests a significant demand for rental properties in the area. The occupancy rate stands at 92%, indicating that the market is relatively tight, with few vacant units available. Given the median household income of $46,766, affordability is a critical issue for many residents. The high price-to-FMR ratio of 9.3x for a two-bedroom unit highlights the disparity between what is considered fair market rent and the actual cost of renting. This ratio is calculated by dividing the Zillow median price ($140,958) by the FMR ($1260). This means that the average renter would need to pay nearly 9.3 times the FMR to own a similar property, which underscores the financial strain on renters who must rely solely on their income to cover living expenses. #### Investor Angle From an investor perspective, the ZIP code 77093 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1260, which is below the Zillow median rent of $1175. This suggests that there could be some cash-flow positive opportunities if investors can secure properties at or below the FMR. However, the tight market and high occupancy rates indicate that competition for these properties will be fierce. Investment grade in this context refers to the quality and potential profitability of rental investments. Given the high rent-to-income ratio and the tight market, the investment grade for this ZIP code is moderate. Investors should carefully consider the potential for long-term stability and the risk of vacancy, especially if they plan to rely heavily on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should target properties that are priced below the FMR of $1260 for a two-bedroom unit. This strategy can help ensure that tenants can afford the rent with their vouchers, thereby reducing the risk of vacancy. For example, a two-bedroom unit priced at $1200 would be more attractive to voucher holders and could provide a steady cash flow. 2. **Consider Smaller Units**: With the FMR for a one-bedroom unit being $1060, smaller units might offer better opportunities for cash-flow positive investments. These units are more likely to be rented by individuals or couples who might not qualify for larger units under the Section 8 program. Additionally, the lower FMR for smaller units means that they are more affordable relative to the median household income. 3. **Engage with Local Real Estate Agents**: To navigate the tight market effectively, investors should work closely with local real estate agents who understand the nuances of the ZIP code. These agents can provide insights into which neighborhoods are most desirable for voucher holders and where the best deals might be found. They can also help with the process of securing tenants through the Section 8 program. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77093 is to **Hold**. While there are opportunities for cash-flow positive investments, particularly with units priced below the FMR, the tight market and high occupancy rates suggest that finding such properties will be difficult. Moreover, the high price-to-FMR ratio indicates that the overall cost of ownership is relatively high compared to the rental income generated by Section 8 vouchers. Therefore, investors should proceed cautiously and focus on securing properties that are well below the FMR to ensure a stable and profitable 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.