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 |
To classify ZIP 77292 in Houston, TX, we must consider the available data on yield and stability. The primary indicator for yield in this case is the Fair Market Rent (FMR) for the fiscal year 2024, which is set at $1330. This figure represents the average rent that a tenant would pay for a unit in the area, assuming they qualify for the Section 8 program.
However, the lack of specific market rent and home value data for ZIP 77292 limits our ability to make a direct comparison. Typically, if the FMR is significantly lower than the market rent, it suggests a higher potential yield for landlords who can secure Section 8 tenants. Conversely, if the FMR is close to or exceeds market rents, the yield advantage diminishes.
On the stability axis, the absence of key metrics such as the percentage of renters, days on market (DOM), and median household income makes it challenging to assess the risk factors involved. These indicators help determine how stable the rental market is and whether tenants are likely to remain consistent in their payments.
Given the limited data, ZIP 77292 cannot be definitively classified as either a high-yield/low-stability market or a steady-cashflow zone. The presence of a defined FMR suggests some level of demand for affordable housing, but without comparative market rent figures, it's unclear how competitive this yield is. The missing stability metrics prevent us from gauging the likelihood of consistent cash flow and tenant retention.
To make a more informed decision, landlords and small-portfolio investors should seek additional local market data. This includes understanding the current rental trends, vacancy rates, and the economic health of the area to complement the known FMR of $1330.
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.