Section 8 Fair Market Rent (FMR) for ZIP 77099 - 2027

Investment Score for ZIP 77099

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	$1,170
1 Bedroom	$1,200
2 Bedrooms	$1,420
3 Bedrooms	$1,910
4 Bedrooms	$2,370
5 Bedrooms	$2,749
6 Bedrooms	$3,079
7 Bedrooms	$3,325
8 Bedrooms	$3,491

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	$1,200	$59,408	2.02%	A+
2BR	$1,420	$93,224	1.52%	A+
3BR	$1,910	$217,418	0.88%	C
4BR	$2,370	$244,135	0.97%	C
5BR	$2,749	$278,998	0.99%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77099 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77099 in Houston, Texas, is set by HUD for 2026 as follows: - 0BR: $1220 - 1BR: $1260 - 2BR: $1500 (which represents 36.4% of the median household income) - 3BR: $2020 - 4BR: $2520 These FMRs are designed to reflect the average rent levels in the area, but they do not necessarily align with actual rental prices. For instance, the Zillow median price for a 2BR unit in ZIP 77099 is $94,591, which translates into a monthly rent of approximately $788 based on a typical mortgage payment (assuming a 30-year fixed rate mortgage at 4.5% interest). This is significantly lower than the FMR of $1500, indicating that the actual rental market may be more affordable than the FMR suggests. However, the price-to-FMR ratio of 5.3x for a 2BR unit suggests that the actual rental costs are much higher than the FMR. This means that tenants using Section 8 vouchers would face significant constraints in finding suitable housing. The voucher program typically covers up to 40% of the rent, so a tenant might only be able to afford a portion of the actual rent, leading to a potential shortage of available units for voucher holders. #### Affordability & Renter Profile ZIP code 77099 has a population of 50,064, with 62.6% of residents being renters. This high percentage indicates a strong demand for rental properties. The occupancy rate of 91.9% further supports this conclusion, showing that there is little vacancy in the rental market. Given the median household income of $49,396, many residents may struggle to find affordable housing, especially when the FMR for a 2BR unit is $1500, which is already a significant portion of their income. The high renter percentage and low vacancy suggest that this is a tight market where supply is constrained relative to demand. This could lead to upward pressure on rents, making it challenging for low-income households to secure housing without assistance like Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code's dynamics present both opportunities and challenges. The FMRs are set to ensure that rents remain within reach for low-income families, but the actual rental prices are much higher. An investor looking to maximize cash flow would need to consider the following: - **Cash Flow Potential**: If an investor can acquire a property at a price that reflects the Zillow median, the actual rental income could be significantly higher than the FMR. For example, a 2BR unit priced at $94,591 could generate a monthly rent of around $788, which is well below the FMR of $1500. However, the investor must also account for the fact that many tenants will be relying on Section 8 vouchers, which cover a maximum of 40% of the rent. Therefore, the investor would need to ensure that the remaining 60% of the rent is affordable for the tenant. - **Investment Grade**: Given the high renter percentage and the tight market conditions, the investment grade for properties in ZIP 77099 is likely to be good. There is a consistent demand for rental properties, and the occupancy rate supports this. However, the reliance on Section 8 vouchers introduces additional risk factors such as government funding and regulatory compliance. #### Specific Actionable Insights 1. **Target Properties Below FMR**: Investors should focus on acquiring properties that can be rented out below the FMR. For instance, a 2BR unit priced at $94,591 could potentially be rented out at $788 per month, which is still below the FMR of $1500. This would allow the investor to benefit from the higher actual rental prices while ensuring that the property remains accessible to Section 8 voucher holders. 2. **Understand Tenant Subsidies**: Investors should familiarize themselves with the subsidy structure of the Section 8 program. A tenant using a voucher would pay 40% of their income towards rent, with the voucher covering the remainder up to the FMR. For a 2BR unit, if the tenant's income is $49,396, they would pay approximately $1648 per month (40% of $49,396), leaving the investor to collect $1500 from the voucher. This means the investor would need to ensure that the remaining 60% of the rent ($1648 - $1500 = $148) is affordable for the tenant. #### Bottom Line Given the high renter percentage and the tight market conditions, ZIP code 77099 presents a viable opportunity for investors focusing on Section 8 properties. However, the significant gap between the FMR and actual rental prices poses a challenge for voucher holders. To succeed in this market, investors should target properties that can be rented out below the FMR to ensure affordability and maximize cash flow. **Recommendation**: **Buy** properties in ZIP 77099 that can be rented out below the FMR, particularly those that can be leased at rates closer to the Zillow median price. This strategy will help investors capitalize on the strong rental demand while maintaining affordability for Section 8 voucher holders.

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.