Section 8 Fair Market Rent (FMR) for ZIP 77365 - 2027

Investment Score for ZIP 77365

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	$1,230
1 Bedroom	$1,260
2 Bedrooms	$1,490
3 Bedrooms	$2,010
4 Bedrooms	$2,490
5 Bedrooms	$2,888
6 Bedrooms	$3,235
7 Bedrooms	$3,494
8 Bedrooms	$3,669

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,490	$208,542	0.71%	D
3BR	$2,010	$264,006	0.76%	D
4BR	$2,490	$362,167	0.69%	D
5BR	$2,888	$487,763	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77365 (Porter, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77365 in Porter, Texas, is set by HUD for 2026. The FMR for a two-bedroom unit is $1550, which represents 19.4% of the median household income in the area. This suggests that the rent is relatively affordable for those receiving Section 8 vouchers. However, it is important to compare this figure with actual rental prices to understand the constraints faced by voucher holders. According to Zillow, the median price for a two-bedroom home in ZIP 77365 is $200,657. The price-to-FMR ratio for a two-bedroom unit is 10.8x, indicating that the purchase price of a property is significantly higher than what a tenant with a Section 8 voucher can afford in rent. This implies that landlords who accept Section 8 vouchers may face challenges in covering their mortgage payments and other expenses solely through rental income. #### Affordability & Renter Profile ZIP 77365 has a population of 46,418, with 22.9% of residents being renters. The occupancy rate stands at 94.2%, suggesting that the housing market is relatively tight. Given the median household income of $95,702, the rent for a two-bedroom unit at $1550 is indeed affordable for most residents, particularly those on Section 8 vouchers. However, the high price-to-FMR ratio indicates that the market is skewed towards homeownership rather than renting. This tight market could make it challenging for renters to find affordable housing options, especially if they are relying on Section 8 vouchers. The median income suggests that while some residents might be able to afford higher rents, others may struggle, leading to a competitive rental environment. #### Investor Angle From an investor perspective, the key question is whether accepting Section 8 vouchers would result in a positive cash flow. Given the FMR for a two-bedroom unit is $1550, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a mortgage payment of around $1000 per month based on the median home price of $200,657 and a 4% interest rate, the remaining $550 would need to cover all other expenses. Property taxes in Montgomery County average around $2,500 annually, or approximately $208 per month. Insurance costs can vary widely but typically range from $100 to $150 per month. Maintenance and utilities might add another $100 to $200 per month. This means that the total monthly expenses could easily exceed the $1550 FMR, resulting in a negative cash flow for landlords who accept Section 8 vouchers. The investment grade for properties in ZIP 77365 would likely be moderate to low due to the tight market and the high purchase price relative to the rental income. While the demand for rentals exists, the financial constraints imposed by the FMR make it less attractive for investors seeking positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1300, which is still a significant portion of the median income ($13.6% of $95,702). This could provide a better chance for positive cash flow compared to larger units. 2. **Consider Non-Section 8 Tenants**: For investors looking to maximize returns, it might be more beneficial to target non-Section 8 tenants. The median rent for a two-bedroom unit is $1550, but the actual market rent could be higher, potentially allowing for positive cash flow. Investors could consider setting rents slightly above the FMR to attract tenants willing to pay more, thereby improving profitability. 3. **Utilize Tax Benefits**: Despite the potential for negative cash flow, investors can leverage tax benefits such as depreciation, property tax deductions, and mortgage interest deductions to offset some of the financial burden. This could make the investment more viable over the long term. #### Bottom Line Given the high price-to-FMR ratio and the financial constraints faced by landlords accepting Section 8 vouchers, the recommendation for Section 8-focused investors is to **skip** ZIP code 77365. The tight market and high purchase prices make it difficult to achieve positive cash flow with the current FMRs. Instead, investors might want to explore areas with lower price-to-FMR ratios or consider targeting non-Section 8 tenants to improve profitability.

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.