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 | $1,090 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $177,338 | 0.74% | D |
| 3BR | $1,780 | $231,491 | 0.77% | D |
| 4BR | $2,210 | $264,888 | 0.83% | C |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 77372, Splendora, TX, reveals a significant gap between the HUD Fair Market Rent (FMR) and the market rent as indicated by the Zillow Observed Rent Index (ZORI). The HUD FMR for ZIP 77372 stands at $1280 for the fiscal year 2024, while the ZORI reflects a market rent of $1,758. This means that landlords accepting Section 8 vouchers will experience negative cash flow when renting at the HUD FMR rate, as it falls well below the current market rent.
To further illustrate the financial dynamics, the median home value in ZIP 77372 is $240,742. Using this figure, we can calculate the rent-to-price ratio. With a market rent of $1,758 per month, the annual rent is approximately $21,096. This translates to an annual rent-to-price ratio of about 8.77%, which is quite high given the median home value. However, when comparing this to the HUD FMR of $1280 per month ($15,360 annually), the rent-to-price ratio drops significantly to 6.39%. This lower ratio indicates that landlords would need to rely on premium units or higher rental rates to achieve positive cash flow from voucher tenants.
The market conditions suggest that voucher tenants will only cash flow positively with premium units, where the rental rates exceed the HUD FMR. Given the N/A-day median days on market (DOM) and the 0.2% share of homes experiencing price cuts, the local real estate market appears stable with minimal pressure on property values. These factors indicate that the primary investor angle in this area should focus on long-term stability rather than short-term cash flow gains.
The strongest angle for investors in ZIP 77372 is stability, as the market shows little volatility and strong demand for housing.
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.