Section 8 Fair Market Rent (FMR) for ZIP 77339 - 2027

Investment Score for ZIP 77339

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	$1,420
1 Bedroom	$1,450
2 Bedrooms	$1,720
3 Bedrooms	$2,320
4 Bedrooms	$2,870
5 Bedrooms	$3,329
6 Bedrooms	$3,728
7 Bedrooms	$4,026
8 Bedrooms	$4,227

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,720	$184,777	0.93%	C
3BR	$2,320	$256,336	0.91%	C
4BR	$2,870	$327,855	0.88%	C
5BR	$3,329	$480,178	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77339 (Houston, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77339 is set by HUD for the year 2026. The FMRs for different unit sizes are as follows: - 0BR: $1500 - 1BR: $1550 - 2BR: $1840 (26.3% of median income) - 3BR: $2480 - 4BR: $3090 These FMRs represent the maximum rent that a Section 8 voucher holder can pay for a given unit size. However, it is important to compare these figures with actual rental prices in the area to understand the dynamics better. According to the Zillow median price for a 2BR property in ZIP 77339, the median home value is $182,256. This translates to a price-to-FMR ratio of 8.3x, which means that the median home value is significantly higher than the FMR for a 2BR unit. This suggests that actual rents in the area could be higher than the FMR, potentially creating a challenge for voucher holders who might find it difficult to secure housing within their budget. #### Affordability & Renter Profile ZIP 77339 has a population of 44,538, with 44.1% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate stands at 93.5%, suggesting that the market is relatively tight, with few vacant units available. Given the median household income of $84,102, the affordability of rental units becomes a critical factor. For instance, the FMR for a 2BR unit is $1840, which represents 26.3% of the median income. This percentage is within a reasonable range for most households, but it still leaves a significant portion of income allocated towards rent. With 44.1% of the population renting, the competition for affordable units is likely high. The FMR for a 2BR unit is just slightly below the Zillow median price for a similar unit, indicating that the market is quite competitive and may be challenging for low-income renters without subsidies. #### Investor Angle From an investor’s perspective, the cash flow potential in ZIP 77339 needs to be evaluated based on the FMRs. If we assume that investors are targeting properties suitable for Section 8 tenants, the key consideration would be whether they can achieve positive cash flow at the FMR levels. Given the Zillow median price for a 2BR unit is $182,256 and the FMR is $1840, the price-to-FMR ratio of 8.3x suggests that the median home value is much higher than the rent that can be charged under the Section 8 program. This implies that investors would need to focus on properties that are priced lower than the median to ensure profitability. To determine if this ZIP code is cash-flow positive at FMR, we need to consider typical expenses such as mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of 1% of the purchase price for annual maintenance and management costs, and a mortgage payment of around 5% of the purchase price, the total annual cost for a 2BR unit priced at $182,256 could be approximately: - Mortgage Payment: $182,256 * 5% = $9,112.80 - Maintenance & Management: $182,256 * 1% = $1,822.56 - Property Taxes: Assume 1.5% of the purchase price = $182,256 * 1.5% = $2,733.84 - Insurance: Assume $1,200 per year Total Annual Expenses: $9,112.80 + $1,822.56 + $2,733.84 + $1,200 = $14,869.20 Annual Rental Income at FMR: $1840 * 12 months = $22,080 Net Cash Flow: $22,080 - $14,869.20 = $7,210.80 This calculation shows that there is a positive cash flow at the FMR level for a 2BR unit. However, the investment grade would depend on factors like the stability of the tenant pool, the local economic conditions, and the risk of vacancy. #### Specific Actionable Insights 1. **Focus on Lower-Priced Properties**: Given the high price-to-FMR ratio, investors should target properties that are priced below the median to ensure profitability. For example, a 2BR unit priced at $150,000 would have a price-to-FMR ratio of 7.6x, making it more financially feasible. 2. **Consider Smaller Units**: Since the FMR for smaller units (0BR and 1BR) is lower, focusing on developing or acquiring smaller units could provide a better return on investment. A 1BR unit priced at $150,000 would have a price-to-FMR ratio of 7.7x, still offering positive cash flow while catering to a broader range of tenants. #### Bottom Line For Section 8-focused investors, ZIP 77339 presents a mixed picture. While there is a positive cash flow potential at the FMR level, the high price-to-FMR ratio indicates that the market is tight and competitive. Therefore, the recommendation is to **Hold** investments in this ZIP code, particularly in properties that are priced below the median and offer smaller units. Investors should carefully evaluate the financial feasibility of each property before committing to ensure long-term profitability and stability. --- This analysis provides a comprehensive overview of the rental market dynamics in ZIP 77339, focusing specifically on how Section 8 vouchers interact with the local housing market. It also offers practical insights for investors looking to enter or hold onto properties in this area.

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.