Location: Walker County, TX | Metro: San Jacinto County, 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 | $890 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $140,985 | 0.86% | C |
| 3BR | $1,640 | $246,403 | 0.67% | D |
| 4BR | $1,740 | $282,453 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 77320, located in Huntsville, TX, within the Walker County metro area, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The key reason for this classification is the favorable spread between the Fair Market Rent (FMR) and the market rent in the region.
The FMR for ZIP 77320 in fiscal year 2026 is set at $1,230, while the current market rent stands at $1,410. This indicates that properties in this ZIP code can be rented out at a rate above the FMR, ensuring a steady and reliable cash flow for landlords and small-portfolio investors. The difference of $180 per month between the FMR and market rent means that landlords can receive higher payments from tenants participating in the Section 8 program, which is capped at the FMR. Consequently, the extra $180 can help cover additional costs such as maintenance, property management, and vacancies, making ZIP 77320 an excellent choice for maintaining positive cash flow.
Additionally, the median home value in ZIP 77320 is $239,079, which is relatively stable. With only a 0.2% price-cut share and a Days on Market (DOM) of 67 days, there is little indication of rapid price appreciation or significant volatility. This stability aligns well with the objective of a cash-flow anchor, which is to provide consistent returns without the expectation of substantial capital gains.
The renter share in ZIP 77320 is 34.1%, and the median income is $55,663. These figures suggest a moderate demand for rental housing and a reasonable level of tenant financial stability. However, these characteristics are secondary to the primary role of a cash-flow anchor, which is to ensure steady income through the differential between FMR and market rents.
In summary, ZIP 77320 serves as a cash-flow anchor due to the significant spread between the FMR and market rent, allowing landlords to benefit from higher payments while still adhering to the Section 8 guidelines. This makes it a solid choice for those looking to stabilize their investment portfolios with predictable income streams.
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.