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 | $960 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $184,068 | 0.64% | D |
| 3BR | $1,580 | $264,981 | 0.6% | F |
| 4BR | $1,960 | $290,060 | 0.68% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 77417 (Beasley, TX) hinges on its yield and stability metrics. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1,060. This is notably lower than the market rent of $1,160, suggesting that landlords can expect slightly above average rental income when compared to the FMR. However, the median home value stands at $281,363, which is significantly higher than both the FMR and market rent figures. This implies that while rental income might be modest relative to property values, there could still be potential for capital appreciation.
On the stability axis, the data indicates that 25.1% of residents are renters, which is relatively low. This percentage suggests that the demand for rentals might be less consistent compared to areas with higher renter populations. The lack of data on days on market (DOM) means we cannot assess how quickly properties are typically rented out. The median household income is $75,405, which provides some context regarding the economic base supporting rental demand.
Based on these figures, ZIP 77417 does not fall into a high-yield/low-stability category. Instead, it represents a moderate cash flow opportunity with potential risks due to lower renter population and unknown DOM trends. The modest gap between the FMR and market rent, combined with the high median home value, points towards an investment environment where steady cash flow is possible but not exceptionally high. Landlords and investors should weigh the potential for rental income against the risk of lower tenant demand and consider diversifying their portfolios to mitigate such risks.
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.