Location: Brazoria County, 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 | $1,270 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,680 |
| 5 Bedrooms | $3,109 |
| 6 Bedrooms | $3,482 |
| 7 Bedrooms | $3,761 |
| 8 Bedrooms | $3,949 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,170 | $441,631 | 0.49% | F |
| 4BR | $2,680 | $567,794 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 77430 might raise several valid concerns regarding the feasibility of investing in this area. Here we address those concerns using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1250 cover the mortgage on a $367,480 home?
The FMR set for ZIP 77430 for fiscal year 2024 is $1250. This figure represents the maximum amount that HUD will pay for rental housing in the area. To determine if this will cover the mortgage on a $367,480 home, we need to calculate the potential monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly payment would be approximately $1790. The FMR of $1250 does not fully cover this amount, leaving a shortfall of $540 per month. However, it's important to note that the FMR is not intended to cover the entire cost of homeownership; it serves as a benchmark for rental subsidies. Landlords can charge more than the FMR, but tenants receiving assistance may only have their portion covered up to this limit.
Objection 2: Is there enough renter demand at 14.8%?
The percentage of renters in ZIP 77430 stands at 14.8%. While this number is relatively low compared to other areas with higher percentages of renters, it still indicates a significant portion of the population seeking rental housing. Moreover, the demand for rentals can vary widely depending on local economic conditions, job availability, and the presence of universities or large employers. The data provided does not give us a complete picture of these factors, so while the 14.8% suggests a smaller pool of potential tenants, it does not definitively indicate insufficient demand. Other sources such as local employment trends or demographic shifts should also be considered.
Objection 3: Will vouchers keep pace with $1,474 market rents?
The average market rent in ZIP 77430 is $1,474, which is notably higher than the FMR. Vouchers, however, do not always cap out at the FMR. They can sometimes cover up to a certain percentage above the FMR, depending on the specific voucher program and local housing authority policies. For instance, some programs allow for a 10% increase over the FMR. If this were the case, the voucher could potentially cover up to $1375, still falling short of the average market rent. It's critical to check with the local housing authority to understand how they adjust voucher amounts to meet market conditions. Without this specific information, we cannot confidently state whether vouchers will keep pace with the market rents in 77430.
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.