Location: Colorado County, TX | Metro: Austin County, 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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 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 | $207,740 | 0.56% | F |
| 3BR | $1,620 | $317,010 | 0.51% | F |
| 4BR | $1,960 | $367,833 | 0.53% | F |
U.S. Census Bureau data (2024)
In ZIP code 77474, which encompasses Sealy, TX, and parts of Austin and Colorado Counties, the HUD Fair Market Rent (FMR) for FY 2024 is set at $1100. This figure contrasts with the market rent of $1,239 reported by the Census Bureau's American Community Survey (ACS).
Voucher tenants in this area will generally cashflow marginally at the FMR of $1100. Landlords can expect to see a slight shortfall when renting to voucher holders, as the difference between the FMR and market rent is approximately $139 per month. This discrepancy means that landlords will need to carefully manage their expenses to ensure profitability.
The median home value in ZIP 77474 is $373,960. To derive the rent-to-price ratio, we divide the median rent by the median home value. The ratio is about 0.33%, indicating that rental income is relatively low compared to property values. However, this also suggests that properties in this area may appreciate over time, offering potential long-term gains for investors.
With a median days on market (DOM) of N/A and a price-cut share of 0.2%, it appears that the local real estate market is stable, with homes selling quickly and few needing to be discounted. This stability supports the viability of both rental and ownership investments in the area.
The strongest angle for Section 8 investors in ZIP 77474 is stability. While cashflow margins may be tight, the robustness of the local real estate market ensures consistent demand for housing, making it a reliable investment option.
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.