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 housing in ZIP code 77497, which falls under Houston-The Woodlands-Sugar Land County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1740 for the fiscal year 2024. This figure represents the maximum amount that the government will pay for a two-bedroom rental unit in this area.
To understand how this impacts landlords, it's essential to break down the components of a Section 8 voucher. A tenant using a Section 8 voucher is required to pay 30% of their adjusted monthly income toward rent. For simplicity, let's assume the tenant's monthly adjusted income is $1000. In this case, the tenant would contribute $300 towards the rent. The remaining balance, up to the SAFMR of $1740, is covered by the government.
In addition to the base rent, there are utility allowances. These allowances vary based on the size of the unit and the region. For a two-bedroom apartment in ZIP 77497, the utility allowance might be around $400, depending on the specifics of the voucher program in place. This means the total reimbursement a landlord can expect from the government and the tenant is $1740, with the tenant paying $300 and the government covering the rest, including the utility allowance.
The SAFMR being set at the ZIP level means that the rate applies specifically to this area and reflects the local rental market conditions. However, the local market rent for a two-bedroom apartment in ZIP 77497 is currently unknown, making it difficult to compare the SAFMR to the actual market rates. If the market rent were known, it could be compared directly to the SAFMR to determine if there is a surplus or a gap.
Given the SAFMR of $1740 and assuming a tenant contribution of $300, the typical reimbursement for a landlord would be $1440 plus the utility allowance. Without the specific local market rent, we cannot calculate the exact reimbursement gap or surplus. However, if the local market rent is higher than $1740, landlords will face a shortfall; conversely, if the local market rent is lower, they will receive a surplus over the market rate.
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.