Location: Walker County, 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 | $1,210 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $211,558 | 0.69% | D |
| 3BR | $1,980 | $290,011 | 0.68% | D |
| 4BR | $2,460 | $390,691 | 0.63% | D |
| 5BR | $2,854 | $626,187 | 0.46% | F |
U.S. Census Bureau data (2024)
1290 is the Fair Market Rent (FMR) for ZIP code 77318 in Willis, TX, for fiscal year 2024. 1864 represents the Zillow Observed Rent Index (ZORI), indicating the average market rent in the area. 333149 is the median home value, reflecting the overall property values in the region. 19.3 percent of residents are renters, showing a significant but not overwhelming share of the rental market. 92415 is the median income, suggesting that most households can afford the average rent. The 63-day Days on Market (DOM) indicates a moderate time frame for properties to sell, neither too quick nor too slow. 0.2 percent is the share of homes that have been listed with a price cut, which is quite low, pointing to a stable market without much downward pressure on prices.
The disparity between the FMR and the ZORI suggests that there could be opportunities for landlords and small-portfolio investors to offer affordable housing solutions while still achieving competitive rents. With a median home value of 333149 and a median income of 92415, the local economy supports both homeownership and rental markets. However, the 19.3 percent renter share highlights that nearly one in five residents are looking for rental properties, making it a viable option for investment.
A 63-day DOM is indicative of a balanced market where properties take a reasonable amount of time to sell, giving investors confidence in their ability to find tenants. Moreover, the extremely low 0.2 percent price-cut share signals a market that is not experiencing significant price declines, which is reassuring for those considering long-term investments.
In conclusion, the data from ZIP 77318 points to a stable and slightly favorable market for Section 8 participation. Landlords and small-portfolio investors should consider the 1290 FMR limit when setting rents, while also leveraging the 1864 ZORI to ensure competitiveness in the broader rental market. Given the economic indicators and market stability, participating in Section 8 can provide a reliable stream of rental income.
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.