Section 8 Fair Market Rent (FMR) for ZIP 77338 - 2027

Investment Score for ZIP 77338

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,470	$160,143	0.92%	C
3BR	$1,980	$216,495	0.91%	C
4BR	$2,460	$253,679	0.97%	C
5BR	$2,854	$306,753	0.93%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77338 (Humble, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77338 in 2026 is set at $1540 for a two-bedroom unit, which represents 28.5% of the median household income of $64,755. This FMR is designed to reflect the average rent that voucher holders can afford. However, the actual median rent for a two-bedroom unit on Zillow is $156,648, which is significantly higher than the FMR. The price-to-FMR ratio is 8.5x, indicating that the actual market rent far exceeds what is considered fair by HUD standards. This discrepancy means that voucher holders face significant constraints in finding affordable housing. They would need to find units priced at or below $1540 for a two-bedroom apartment, which is only about 18% of the Zillow median price. Given the high price-to-FMR ratio, it is likely that most landlords would prefer market-rate tenants over those using vouchers, as they can command much higher rents. #### Affordability & Renter Profile ZIP code 77338 has a population of 48,031, with 52.5% of residents being renters. This indicates a substantial rental market, but the occupancy rate of 93.6% suggests that the market is relatively tight. With nearly half of the population renting, there is a considerable demand for rental properties, particularly for those who rely on Section 8 vouchers. Given the median household income of $64,755, many residents may struggle to afford market-rate rents. The FMR for a three-bedroom unit is $2070, which is 31.9% of the median income, and for a four-bedroom unit, it is $2580, or 39.8%. These figures suggest that families with multiple bedrooms may find it particularly challenging to secure housing through the voucher program. The tight market conditions combined with the high proportion of renters indicate that competition for affordable units is fierce. Landlords have the upper hand in setting higher rents, which makes it difficult for voucher holders to find suitable housing within their budget. #### Investor Angle From an investor’s perspective, the key question is whether investing in rental properties in ZIP code 77338 can be cash-flow positive at the FMR levels. Given the high price-to-FMR ratio of 8.5x, it is clear that the actual market rents are much higher than the FMR. For instance, a two-bedroom unit on Zillow costs $156,648, while the FMR is only $1540. This means that if an investor were to rent exclusively to voucher holders, they would be leaving significant revenue on the table. However, if an investor focuses on the Section 8 market, they must consider the operational costs and potential vacancy rates. The FMR levels provide a baseline for affordability, but they do not necessarily guarantee profitability. In a tight market like Humble, TX, where the occupancy rate is 93.6%, the risk of vacancies is lower compared to areas with oversupply. Still, the low FMR relative to the actual market prices could make it challenging to achieve positive cash flow without subsidies or other forms of support. The investment grade for this ZIP code would be moderate to low for Section 8-focused investments due to the limited ability to charge market rates. Investors should carefully evaluate the local demand for subsidized housing and the potential for securing long-term tenants who can benefit from the voucher program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1290, which is still significantly below the market rate but may offer better opportunities for cash flow. Additionally, the demand for smaller units tends to be more stable, making them a safer bet in terms of occupancy. 2. **Consider Mixed Tenancy**: To balance the risk and reward, investors might want to consider a mixed tenancy approach. This involves renting some units to market-rate tenants and others to voucher holders. By doing so, investors can leverage the higher market rents to offset the lower FMR rents and maintain a positive cash flow. For example, a two-bedroom unit rented to a market-rate tenant at $1566 per month would generate nearly double the income compared to a voucher holder. 3. **Evaluate Property Condition**: Since voucher holders often require properties that meet certain quality standards, investors should ensure that their properties are well-maintained and up to code. This can help attract both voucher holders and market-rate tenants, increasing the overall appeal of the property. Investing in renovations or upgrades can also improve the chances of securing tenants who can benefit from the voucher program. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 77338 is to **Skip**. The high price-to-FMR ratio and the tight market conditions make it challenging to achieve positive cash flow solely through the voucher program. While there is a significant demand for rental housing, the actual rents far exceed the FMR, leading to a situation where landlords are more inclined to rent to market-rate tenants. Investors looking to enter this market should either diversify their tenant mix or consider areas with a more favorable price-to-FMR ratio.

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.