Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
The economics of Section 8 in ZIP code 77487, located in Houston-The Woodlands-Sugar Land County, Texas, can be quite favorable for landlords and small-portfolio investors when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1740. This figure represents the maximum amount that the housing authority will pay towards the rent of a two-bedroom unit.
To break down how this works financially, consider that the total rent charged to tenants is typically split into two parts: the tenant's contribution and the housing authority's subsidy. The tenant is required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income for a household in ZIP 77487, this would mean that the tenant might contribute around $522 to the monthly rent, which is 30% of the SAFMR. However, the actual tenant contribution can vary based on individual income levels.
In addition to the tenant's contribution, there is also a utility allowance that is factored into the overall payment structure. For ZIP 77487, the utility allowance for a two-bedroom apartment is set at $300 per month. This allowance is intended to cover the cost of utilities such as electricity, water, and gas, and it is paid directly to the landlord along with the housing authority's subsidy.
Therefore, the total reimbursement received by the landlord from the housing authority and the tenant would be the sum of the tenant's contribution and the utility allowance. Assuming the average tenant contribution of $522 plus the utility allowance of $300, the landlord could receive up to $1842 per month for a two-bedroom apartment. This is slightly above the SAFMR of $1740, indicating a potential surplus for landlords who manage their costs effectively.
The typical reimbursement gap or surplus in ZIP 77487 for a two-bedroom voucher is a surplus of approximately $102 per month. This means that landlords can expect to receive slightly more than the SAFMR, assuming they charge close to the SAFMR and their tenants' contributions align with the average scenario described.
Data Sources: FMR data from HUD (2027).
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.