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 | $1,100 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $282,021 | 0.51% | F |
| 3BR | $1,770 | $432,968 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 77363 in Grimes County, Texas reveals several key points for landlords and small-portfolio investors. First, regarding the rent math, the Family Monthly Rent (FMR) set at $1,190 for fiscal year 2024 is significantly lower than the market rent of $1,380 as reported by the Census Bureau's American Community Survey (ACS). This indicates that landlords could potentially face a shortfall if they rely solely on the FMR rate, suggesting that market conditions support higher rental rates.
Second, the acquisition cost in this area is centered around a median home value of $350,765. The lack of data on days on market (DOM) and the low percentage of homes requiring price cuts (0.2%) imply that the housing market is stable but not particularly fast-moving. This suggests that while acquiring properties at this median value is feasible, it may require patience and strategic pricing to attract buyers quickly.
Third, the tenant demand is modest given the population of 3,468 and a relatively low renter share of 10.7%. This means that only about 371 residents are likely to be renters, which could limit the pool of potential tenants. Landlords should be prepared for a smaller and possibly more competitive rental market.
In conclusion, while the market supports higher rents compared to the FMR, the affordability of acquisitions is balanced by a stable yet slow-moving housing market. Tenant demand is limited, necessitating careful consideration of property management strategies to maintain occupancy. Investors should proceed with caution, leveraging local knowledge to navigate the smaller rental pool effectively.
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.