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 | $1,520 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,840 | $281,861 | 0.65% | D |
| 3BR | $2,480 | $348,798 | 0.71% | D |
| 4BR | $3,080 | $450,048 | 0.68% | D |
| 5BR | $3,573 | $522,594 | 0.68% | D |
U.S. Census Bureau data (2024)
Sugar Land, TX (ZIP 77478), presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,850, which is higher than the market rent of $1,795. This indicates that there is potential for slightly above-market rents, offering a decent yield. However, the median home value of $433,631 suggests a relatively expensive market entry point.
The stability of the area can be gauged by the percentage of renters and average household income. With 24.3% of residents being renters, the rental market is not overwhelmingly dominant, but it does represent a significant portion of the population. The average household income in the area is $118,495, which is strong and indicative of financial stability among residents. This supports the ability of tenants to consistently pay their rent.
Despite the lack of data on the number of days a property spends on the market (DOM), the combination of a moderate rental percentage and a robust average income implies a stable tenant base. This stability is crucial for maintaining consistent cash flow, especially when compared to areas with higher percentages of renters who might struggle with payments.
In summary, ZIP 77478 leans towards a steady-cashflow zone. The FMR of $1,850 allows for a competitive edge over the market rent of $1,795, providing a modest yield. The area's median home value of $433,631 and average household income of $118,495 support a stable environment where tenants are likely to maintain regular rent payments. While the rental percentage of 24.3% is not negligible, it does not suggest the kind of volatility that would characterize a high-yield/low-stability market.
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.