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 | $1,300 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $196,913 | 0.68% | D |
| 2BR | $1,580 | $172,104 | 0.92% | C |
| 3BR | $2,130 | $266,327 | 0.8% | D |
| 4BR | $2,640 | $338,919 | 0.78% | D |
| 5BR | $3,062 | $426,145 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77477, located in Stafford, TX, within Fort Bend County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1510. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. It's important to note that the local market rent, as measured by ZORI (Zillow Observed Rent Index), is $1500.
A landlord participating in the Section 8 program can expect the following breakdown of payments. The voucher holder is responsible for paying 30% of their adjusted income towards rent. This amount is determined by the local housing authority and is not negotiable. The remaining balance is covered by the government, up to the SAFMR limit. In addition to the base rent, there are utility allowances that vary based on the size of the unit and the location. For a two-bedroom unit in ZIP 77477, the utility allowance is approximately $300 per month.
To illustrate, if a tenant's portion of the rent is $453 (which is 30% of an income that would make the total rent $1510), the government would pay the difference between the tenant’s portion and the SAFMR, which in this case is $1510 - $453 = $1057. However, since the SAFMR includes the utility allowance, the actual reimbursement for rent without utilities would be $1510 - $300 = $1210. Therefore, the government would pay $1057 towards the rent, and the tenant would pay $453, totaling $1510.
If the local market rent is below the SAFMR, as it is in ZIP 77477 where the ZORI is $1500, landlords still receive the full market rent plus any applicable utility allowance, meaning they would receive $1500 in rent and the $300 utility allowance, totaling $1800. This scenario leaves a surplus for landlords, as they receive more than the SAFMR dictates, but only up to the actual market rate plus utilities.
In ZIP 77477, the typical reimbursement gap or surplus for a two-bedroom voucher is a surplus of $290 per month, considering the SAFMR is $1510 and the local market rent is $1500. This surplus is due to the utility allowance exceeding the difference between the SAFMR and the local market rent. Landlords should understand these specifics to manage their expectations and financial planning accurately when accepting Section 8 vouchers.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.