Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
The economics of Section 8 in ZIP code 77248, located in Houston-The Woodlands-Sugar Land County, Texas, revolve around the SAFMR (Small Area Fair Market Rent) rates established by HUD. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1330. This figure is specific to this ZIP code, meaning it reflects the rental market conditions unique to 77248.
The SAFMR serves as the upper limit for what a Section 8 housing voucher will pay towards rent. However, the actual amount paid by the voucher program is determined by a formula that includes the tenant's contribution, which is typically 30% of their adjusted income, plus any applicable utility allowances. If a landlord charges more than $1330 for a two-bedroom unit, the landlord must cover the difference between the SAFMR and the higher rent price.
To walk through the specifics, let's assume a tenant has an adjusted income that results in a monthly contribution of $399 (30% of $1330). The voucher program would then cover the remainder of the SAFMR, up to $931, for the landlord. If there is a utility allowance of $200, this is also added to the reimbursement, bringing the total reimbursement to $1131 per month. This calculation assumes the tenant’s income is such that their 30% contribution does not exceed $399; if it were higher, the reimbursement would adjust accordingly but never exceed the SAFMR.
In ZIP 77248, landlords need to be aware that the local market rent is currently unavailable, which makes it difficult to compare the SAFMR to prevailing market rates. However, the SAFMR sets a cap on what the voucher program will pay, regardless of the market conditions.
The typical reimbursement gap or surplus for a two-bedroom voucher in this ZIP code is calculated by subtracting the reimbursement amount from the market rent. Since the local market rent is not available, we cannot provide a precise gap or surplus. However, if the market rent were above $1330, landlords would face a reimbursement gap. Conversely, if the market rent were below $1330, landlords could expect a surplus, though the voucher payment would still be capped at $1330.
To summarize, landlords in ZIP 77248 should expect a voucher reimbursement of up to $1330 for a two-bedroom unit, with the tenant contributing approximately $399 and an additional $200 for utilities, totaling $1131. The exact gap or surplus depends on the current market rent, which is not specified here.
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.