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 | $1,320 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $284,651 | 0.56% | F |
| 3BR | $2,160 | $356,521 | 0.61% | D |
| 4BR | $2,670 | $437,511 | 0.61% | D |
| 5BR | $3,097 | $569,515 | 0.54% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77384, located in Conroe, TX, within Montgomery County, operate under specific financial guidelines designed to ensure affordability for tenants while providing a stable income source for landlords. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) set for this specific ZIP code is $1510 per month for the fiscal year 2024. This figure represents the maximum amount that a Section 8 Housing Choice Voucher can pay towards rent.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,524 for a similar two-bedroom unit. This slight discrepancy between the SAFMR and the ZORI indicates that landlords participating in the Section 8 program will receive a rent subsidy very close to the market rate, with minimal impact on their rental income.
A voucher payment is structured into two parts: the tenant's portion and the government's portion. Typically, the tenant is required to contribute 30% of their adjusted income toward the rent. If we assume an average adjusted income of $1,510 for a household in this area, the tenant would pay approximately $453 towards rent. This leaves the government to cover the remaining balance up to the SAFMR limit.
In addition to the base rent, utility allowances are also factored into the overall payment structure. These allowances vary but generally aim to cover a reasonable cost of utilities. For ZIP 77384, the utility allowance is around $350 per month, which is not directly paid to the landlord but helps the tenant manage their expenses.
To illustrate, if a landlord charges $1,510 for a two-bedroom apartment, and the tenant contributes $453, the government would reimburse the landlord the difference, which is $1,057. This brings the total reimbursement close to the market rate, with only a minor gap of $64 ($1,524 - $1,510).
Landlords should be aware that the actual reimbursement amount can fluctuate based on the tenant's income and any adjustments made by the local housing authority. However, the reimbursement will never exceed the SAFMR of $1,510. Given the market conditions in ZIP 77384, landlords participating in the Section 8 program can expect a small surplus or gap, depending on their pricing strategy. In this case, the typical reimbursement gap is $64, indicating that landlords might need to slightly adjust their rent to align perfectly with the SAFMR to avoid losing out on potential income.
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.