Section 8 Fair Market Rent (FMR) for ZIP 77385 - 2027

Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area

Investment Score for ZIP 77385

N/A

Monthly Rent (2BR)

$1,870

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$1,540
1 Bedroom	$1,580
2 Bedrooms	$1,870
3 Bedrooms	$2,520
4 Bedrooms	$3,130
5 Bedrooms	$3,631
6 Bedrooms	$4,067
7 Bedrooms	$4,392
8 Bedrooms	$4,612

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
3BR	$2,520	$299,316	0.84%	C
4BR	$3,130	$384,952	0.81%	C
5BR	$3,631	$436,283	0.83%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

28,156

Median Household Income

$117,118

Housing Units

10,266

Renter Percentage

24.7%

Occupancy Rate

94.2%

Renter Occupied

2,387

The ZIP code 77385, located in Texas, is part of a suburban area that offers a mix of residential and commercial properties. This region has seen steady growth in recent years, attracting both renters and buyers interested in its blend of affordability and proximity to urban amenities.

The Fair Market Rent (FMR) for ZIP 77385 for fiscal year 2024 is set at $1,650, which provides a benchmark for rental pricing in subsidized housing units.
The Zillow Observed Rental Index (ZORI) indicates that the average market rent for properties in ZIP 77385 stands at $1,900, reflecting the higher demand for non-subsidized rentals.
The median home value in this ZIP code is $350,173, showing a relatively stable housing market that is accessible to many potential homeowners.
Renters make up 24.7% of the population in ZIP 77385, indicating a significant portion of the community prefers leasing over purchasing.
The days on market (DOM) for listings in ZIP 77385 average at 68 days, suggesting a moderate pace of sales activity where neither buyers nor sellers dominate the market.
The median household income in this area is $117,118, providing insight into the economic stability and purchasing power of residents.

Given the data points outlined, investors can expect a balanced market in ZIP 77385. The disparity between the Fair Market Rent and the ZORI suggests opportunities for landlords to command slightly higher rents for market-rate properties. The median home value indicates a stable housing market, while the renter share highlights a segment of the population likely to continue leasing. The DOM figure reflects a market where listings move reasonably quickly, but not so fast as to suggest a seller's market. With median incomes well above the national average, there is a strong base of financial security supporting both rental and home purchase activities. For small-portfolio investors, focusing on quality rental properties could yield favorable returns, given the local demand and income levels.

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.