Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $202,545 | 0.63% | D |
| 3BR | $1,720 | $234,986 | 0.73% | D |
| 4BR | $2,140 | $297,052 | 0.72% | D |
| 5BR | $2,482 | $384,222 | 0.65% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 77303, Conroe, TX, is set at $1,280 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, not the actual rent you will receive. It's important to note that the FMR is designed to ensure affordability for low-income families while providing a reasonable income for landlords.
In comparison, the local market rent for ZIP 77303 is currently $1,617, based on the Zillow Observed Rental Index (ZORI). This indicates that the FMR is lower than the typical market rate, meaning that if you participate in the Section 8 program, your rental income will be less than what you might receive from a non-subsidized tenant.
However, the demand for affordable housing remains strong in Conroe, with 25.8% of the population renting. This high percentage suggests a significant number of potential tenants who could benefit from Section 8 subsidies. While the rental income may be lower, the steady stream of payments from the government can provide financial stability and reduced vacancy rates.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in ZIP 77303 is approximately $265,730. This is a key figure when assessing the acquisition cost of a new investment property. Given the lower rental income compared to market rates, it's crucial to ensure that the purchase price aligns with the expected returns and that the property meets the necessary quality standards to qualify for the program.
Before making your decision, verify that the property complies with HUD’s Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Ensuring HQS compliance is critical because it directly affects whether your property can be approved for the Section 8 program and thus whether you can receive the subsidy payments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.