Section 8 Fair Market Rent (FMR) for ZIP 77389 - 2027

Investment Score for ZIP 77389

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	$1,600
1 Bedroom	$1,630
2 Bedrooms	$1,940
3 Bedrooms	$2,610
4 Bedrooms	$3,240
5 Bedrooms	$3,758
6 Bedrooms	$4,209
7 Bedrooms	$4,546
8 Bedrooms	$4,773

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,940	$284,667	0.68%	D
3BR	$2,610	$355,593	0.73%	D
4BR	$3,240	$527,434	0.61%	D
5BR	$3,758	$927,328	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77389 (Spring, TX) #### Section 8 Voucher Dynamics In ZIP code 77389, the Fair Market Rent (FMR) for a two-bedroom unit is set at $2130 per month. This represents 18.2% of the median household income of $140,683. However, the actual rent prices in the area are significantly higher. The Zillow median price for a two-bedroom home is $290,967, which translates to a monthly rent of approximately $1145 per month if we assume a typical rental yield of 4%. Given that the FMR is $2130, it suggests that the actual market rent for a two-bedroom unit is likely around $1800 to $2000 per month based on typical rental yields. This means that voucher holders face significant constraints, as the FMR is lower than what landlords might charge in the open market. The difference between the FMR and the potential market rent could make it challenging for voucher holders to find suitable housing, especially since the occupancy rate is high at 96.2%. #### Affordability & Renter Profile The population of ZIP 77389 is 45,701, with 24.8% of residents being renters. The median household income is quite high at $140,683, indicating that the area attracts a relatively affluent demographic. With the FMR for a two-bedroom unit being only 18.2% of the median income, the market appears to be tight for those relying solely on vouchers. For non-voucher holders, the affordability is less of an issue due to their higher income levels. The high occupancy rate of 96.2% also suggests that there is little excess capacity in the rental market, making it competitive for both voucher holders and regular renters. #### Investor Angle From an investor perspective, the ZIP code 77389 presents a mixed picture. The FMR for a two-bedroom unit is $2130, but the actual market rent is likely higher, around $1800 to $2000 per month. If we consider the typical rental yield of 4%, the investment grade would be favorable for those who can afford to purchase properties at the median price of $290,967. However, the price-to-FMR ratio of 11.4x indicates that the cost of purchasing a property is very high relative to the rent that can be charged under the Section 8 program. This suggests that while the area is attractive for other types of investments, it may not be as lucrative for Section 8-focused investors due to the high upfront costs and lower potential rental income. #### 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 zero-bedroom apartments. The FMR for a one-bedroom unit is $1790, which is still a significant portion of the median income but may offer better cash flow compared to larger units. Additionally, the FMR for a zero-bedroom unit is $1730, which could be a viable option for investors looking to maximize returns within the constraints of the Section 8 program. 2. **Consider Location-Specific Factors**: While the overall market appears tight, certain areas within ZIP 77389 might have slightly more affordable rents. Investors should conduct thorough location-specific research to identify pockets where rents are closer to the FMR. This could involve analyzing neighborhoods with different amenities or proximity to major employers, which might influence rental prices. #### Bottom Line For Section 8-focused investors, the ZIP code 77389 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **Skip** this ZIP code unless you can find properties priced significantly below the median or focus on smaller units like zero-bedroom or one-bedroom apartments where the FMR is closer to potential market rents. The high median household income and occupancy rate suggest that the demand for rentals is strong, but the constraints imposed by the FMR make it difficult to achieve positive cash flow in larger units.

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.