Section 8 Fair Market Rent (FMR) for ZIP 77241 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 77241, located in Houston-The Woodlands-Sugar Land County, Texas, operate under a specific framework designed to ensure affordable housing for eligible tenants while providing a steady income stream for landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1330 per month for the fiscal year 2024. This SAFMR is unique to this specific ZIP code, meaning it reflects the rental market conditions particular to 77241.

A landlord's income from a Section 8 voucher is calculated based on the SAFMR and the tenant's portion of the rent. The tenant is required to pay 30% of their adjusted monthly income towards rent. For example, if a tenant's adjusted monthly income is $1000, they would pay $300 toward the rent. The remainder of the rent, up to the SAFMR, is paid by the Housing Authority. In this case, the Housing Authority would cover $1030 of the $1330 SAFMR, ensuring the landlord receives the full SAFMR amount.

Utility allowances also play a role in the overall economics. These allowances are separate from the rent and vary by region. In ZIP 77241, the utility allowance for a two-bedroom unit is typically around $300 per month, which is paid directly to the tenant to cover utilities. Therefore, the total compensation a landlord can expect from a Section 8 voucher for a two-bedroom apartment is the SAFMR of $1330 plus the utility allowance of $300, totaling $1630 per month.

However, it is important to note that the local market rent for ZIP 77241 is currently unknown due to insufficient data. This lack of information makes it challenging to accurately assess whether the SAFMR aligns with market rates or represents a surplus or shortfall for landlords. Despite this, the SAFMR serves as the benchmark for rental payments under the Section 8 program in this specific ZIP code.

To summarize, landlords in ZIP 77241 can expect a guaranteed payment of $1330 for a two-bedroom apartment, with an additional $300 utility allowance. If the local market rent is higher than the SAFMR, landlords will experience a reimbursement gap, meaning they receive less than the market rate. Conversely, if the SAFMR exceeds the local market rent, landlords will see a surplus, receiving more than the average market rate. Given the current data, landlords should prepare for a potential reimbursement gap, though the exact figure cannot be determined without the local market rent information.

Data Sources: FMR data from HUD (2027).

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.