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 | $1,810 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $248,341 | 0.89% | C |
| 3BR | $2,960 | $311,748 | 0.95% | C |
| 4BR | $3,680 | $423,361 | 0.87% | C |
| 5BR | $4,269 | $580,882 | 0.73% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 77345, located in the Houston-The Woodlands-Sugar Land, TX HUD Metro FMR area, does not align favorably. The Fair Market Rent (FMR) set at $1930 for the fiscal year 2024 is significantly below the actual market rent, which stands at $2,298 as measured by ZORI. This discrepancy means that landlords will have to accept a lower rent than what the market dictates to comply with FMR guidelines.
Acquisition in this ZIP code is relatively affordable. With a median home value of $411,310, potential investors can enter the market without an excessive capital outlay. Additionally, homes typically remain on the market for 46 days, indicating a moderate seller's market where properties do not linger long. The fact that only 0.2% of listings involve price cuts suggests that homes generally hold their value well, making it a stable investment environment.
Tenant demand in ZIP 77345 is moderate. The area has a population of 27,917, with 14.0% being renters. While the number of potential tenants is present, the relatively low percentage of renters compared to homeowners might indicate a preference for ownership over renting, which could affect the pool of available tenants.
Overall, ZIP 77345 presents a mixed scenario for Section 8 landlords and small-portfolio investors. The primary challenge lies in the unfavorable rent math, where compliance with FMR may mean accepting less than market rent. However, the affordability of acquisitions and the stability of property values provide a solid foundation for investment. Tenant demand is moderate, suggesting that while there are opportunities, they may be limited by the smaller proportion of renters in the area. Investors should weigh these factors carefully before committing to this market.
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.