Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
The economics of Section 8 housing in ZIP code 77501, located in Houston-The Woodlands-Sugar Land County, Texas, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in ZIP 77501, the SAFMR for FY 2024 is set at $1330. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent.
The SAFMR is a critical benchmark for landlords because it determines the reimbursement limit they can expect from the government for a Section 8 tenant. However, the actual amount paid to landlords is influenced by several factors including the tenant's contribution and utility allowances.
Tenants participating in the Section 8 program are required to contribute 30% of their adjusted income toward rent. This amount is calculated based on the tenant's gross income minus certain allowable deductions such as dependents and medical expenses. Once this percentage is determined, it is subtracted from the SAFMR to find out what the government will cover.
For example, if a tenant's 30% contribution is $400, the government would pay the difference between the SAFMR and the tenant's share. In this case, the government would reimburse the landlord $930 ($1330 - $400).
In addition to the rent, there are utility allowances that vary by season and region. These allowances do not directly affect the rent reimbursement but can be a part of the overall budgeting considerations for the landlord. They are designed to help tenants cover their energy costs.
The SAFMR being specific to ZIP 77501 means that it is set based on the rental market conditions in this particular area, ensuring that it reflects the local economic reality accurately. This specificity helps to avoid overpayment or underpayment situations that could arise from using a broader regional average.
Given the lack of specific data on local market rents, it's important to note that the SAFMR of $1330 might either exceed or fall short of the prevailing market rates. If the local market rent is higher than the SAFMR, landlords will face a reimbursement gap where they must decide whether to accept the lower government payment or seek non-voucher tenants willing to pay the full market rate. Conversely, if the local market rent is lower, landlords may see a surplus, where the SAFMR exceeds the typical rental price, potentially leading to higher profits.
To conclude, landlords in ZIP 77501 should be aware that the reimbursement for a two-bedroom unit will be capped at $1330, with the tenant contributing 30% of their adjusted income towards the rent. The exact reimbursement gap or surplus will depend on the actual market rents, which are currently unspecified, making it necessary for landlords to monitor local rental trends closely.
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.