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 | $1,190 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,440 | $182,400 | 0.79% | D |
| 3BR | $1,940 | $239,077 | 0.81% | C |
| 4BR | $2,410 | $281,279 | 0.86% | C |
| 5BR | $2,796 | $366,828 | 0.76% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 77357, located in New Caney, TX, within Montgomery County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1170 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local housing market conditions more accurately than broader county or metropolitan averages.
In contrast, the local market rent for a two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,830. This indicates a significant disparity between the market rent and the SAFMR, which is crucial for landlords to understand when considering participation in the Section 8 program.
A landlord participating in Section 8 will receive payment based on the SAFMR plus any utility allowances. The tenant is responsible for paying approximately 30% of their adjusted income toward rent. For ZIP 77357, if we assume an average tenant contribution of $351 (based on the SAFMR), then the total rent covered by the voucher would be the sum of the tenant's portion and the utility allowance. Utility allowances can vary but typically range from $200 to $400 per month, depending on the size of the unit and the region.
To illustrate, if the utility allowance is $300, the landlord would receive a total of $651 ($351 from the tenant and $300 for utilities) plus the SAFMR of $1170, totaling $1821. However, since the local market rent is higher at $1830, the landlord would face a minor shortfall of $9 per month.
It's important to note that while the SAFMR is $1170, the actual reimbursement to the landlord can be slightly higher if the market rent is within a certain percentage above the SAFMR, usually up to 10%. In this case, the market rent of $1830 is well above the SAFMR, indicating that landlords in ZIP 77357 may not fully recover market rates solely through Section 8 vouchers.
The typical reimbursement gap for a two-bedroom unit in ZIP 77357 is thus $9, meaning landlords will receive $9 less than the local market rent of $1830. This gap reflects the difference between the SAFMR plus the tenant's portion and utility allowances, and the actual market rent.
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.