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 | $1,850 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,760 |
| 5 Bedrooms | $4,362 |
| 6 Bedrooms | $4,885 |
| 7 Bedrooms | $5,276 |
| 8 Bedrooms | $5,540 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $456,592 | 0.49% | F |
| 3BR | $3,030 | $654,464 | 0.46% | F |
| 4BR | $3,760 | $1,242,957 | 0.3% | F |
| 5BR | $4,362 | $1,627,371 | 0.27% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 77401 (Bellaire, TX) on the axes of yield and stability reveals it to be a steady-cashflow zone for Section 8 real estate investments.
Firstly, let's examine the yield. The Fair Market Rent (FMR) for ZIP 77401 in fiscal year 2024 is set at $2040, which is significantly lower than the market rent of $2411. This means that landlords can expect a slightly lower rental income when participating in the Section 8 program compared to market rates. However, the median home value in the area is quite high at $1,162,689, indicating a strong property appreciation potential over time.
Moving on to stability, the percentage of renters in ZIP 77401 is relatively low at 12.1%, suggesting a predominantly owner-occupied neighborhood. While this figure might imply less demand for rental properties, the average household income of $243,750 is exceptionally high. This robust financial health of residents supports consistent payment of rents and reduced risk of default, even under Section 8.
The absence of data on the number of days on market (DOM) could indicate a tight housing market where properties are rented quickly once listed. Given the high income levels and the disparity between FMR and market rent, it's reasonable to infer that tenants receiving Section 8 assistance would likely find Bellaire an attractive location due to the affordability it provides relative to the local market.
In summary, ZIP 77401 presents a balanced scenario favoring steady cash flow rather than high-yield returns. The low FMR compared to market rent and the high median home value point towards moderate rental income but significant long-term investment security. The high average income further stabilizes the investment environment, making it suitable for landlords seeking reliable, albeit not exceptionally high, rental yields.
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.