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 | $1,070 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,100 | $227,321 | 0.48% | F |
| 2BR | $1,300 | $238,159 | 0.55% | F |
| 3BR | $1,750 | $329,431 | 0.53% | F |
| 4BR | $2,170 | $467,307 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP code 77461, located in Needville, TX, falls within the larger Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1290. Comparatively, the average FMR for ZIP codes within this metro area typically ranges higher, indicating that 77461 is positioned as a value pocket within the broader market.
The market rent in 77461 stands at $999, which is notably lower than the FMR. This suggests that landlords in this area could potentially benefit from the difference between the HUD-subsidized rent and the actual market rate. The home value in this ZIP is $357,137, which is also below the typical range for the Houston-The Woodlands-Sugar Land metro area, further supporting its classification as a value pocket.
The renter share in 77461 is 20.3%. While this percentage is relatively low compared to other areas within the metro, it still represents a significant portion of the housing market. The combination of a below-average home value and a notable renter share can be an indicator of a sweet spot for Section 8 investors. However, this inference requires careful consideration of the local demand for rental properties and the specific dynamics of the subsidized housing market in Needville.
To summarize, based on the provided figures, ZIP code 77461 appears to be a value pocket within the Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area. It offers opportunities for landlords and small-portfolio investors due to its lower-than-average FMR and market rent, coupled with a below-average home value. The presence of a moderate renter share adds to the attractiveness of this area for those interested in Section 8 properties, though the exact potential would depend on further analysis of local demand and supply.
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.