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 | $1,570 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $286,446 | 0.67% | D |
| 3BR | $2,570 | $325,208 | 0.79% | D |
| 4BR | $3,190 | $544,664 | 0.59% | F |
| 5BR | $3,700 | $1,521,811 | 0.24% | F |
U.S. Census Bureau data (2024)
The ZIP code 77380, located in Spring, TX, presents a dynamic rental market influenced by both the Federal Market Rent (FMR) and the Zillow Observed Rent Index (ZORI). The FMR for this area is set at $1760 for fiscal year 2024, while the actual market rent, as measured by ZORI, stands at $1,617. This suggests that landlords have some flexibility in pricing their units slightly above the observed market rate without deterring tenants.
A key indicator of market health is the price-cut share, which is currently at 0.3%. This low percentage indicates that few properties are being discounted, implying that the market is robust and that most listings are attracting tenants at their initial asking price. Additionally, the days on market (DOM) for rentals is 45 days, which is relatively short and signals strong demand for available units.
The median home value in the area is $388,861, reflecting a stable housing market where property values are not excessively inflated. However, the significant 63.6% renter share points to a high proportion of residents preferring to lease rather than purchase homes. This trend can be indicative of several factors including affordability issues, population demographics, or a preference for mobility among residents.
In terms of supply and demand, the short DOM and low price-cut share suggest that demand is outpacing supply. Landlords and small-portfolio investors should take note of these conditions as they indicate a favorable environment for maintaining or increasing rental rates without losing occupancy. The high renter share also implies that there will likely be persistent housing pressure in the long term, making rental properties an attractive investment opportunity.
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.