Location: Grimes 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 | $1,430 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,470 | $134,507 | 1.09% | B |
| 2BR | $1,740 | $192,454 | 0.9% | C |
| 3BR | $2,340 | $339,048 | 0.69% | D |
| 4BR | $2,910 | $502,347 | 0.58% | F |
| 5BR | $3,376 | $951,244 | 0.35% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP 77356 (Montgomery, TX) for Section 8 properties, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1630 cover the debt service on a $364,423 property?
No. The average FMR of $1630 is unlikely to fully cover the debt service on a property valued at $364,423. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, these costs would likely exceed the FMR amount.
2) Is the market rent ($1,826 ZORI) above, at, or below the FMR?
Above. The ZORI (Zip Level Rent Index) of $1,826 is higher than the FMR of $1630. This indicates that market rents are generally higher than what the government will reimburse for Section 8 tenants, which could be a consideration for landlords looking to balance between market and Section 8 tenants.
3) Are 18.5% of residents renters and does a 47-day Days on Market (DOM) indicate enough demand?
It depends. With 18.5% of residents being renters, there is a moderate level of rental demand. However, the DOM of 47 days suggests that properties take a little over a month and a half to sell or rent out, which might be considered long for some investors. This could imply a slower-moving market, but it also depends on how quickly you need to turn over your investment.
If the FMR does not cover the debt service, then buying a property for Section 8 in ZIP 77356 is not advisable unless you can secure other sources of income to make up the difference. The fact that market rents are above the FMR means you could potentially command higher rents from non-Section 8 tenants, but this doesn't directly address the initial question about Section 8 suitability.
The rental percentage and DOM provide insight into the overall demand for rentals in the area. While the 18.5% figure shows that there is a segment of the population renting, the longer DOM suggests that finding tenants, including those in the Section 8 program, might take more time than desired.
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.