Section 8 Fair Market Rent (FMR) for ZIP 77502 - 2027

Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area

Investment Score for ZIP 77502

Monthly Rent (2BR)

$1,300

Median Price (2BR)

$163,850

1% Rule

0.79%

Annual Yield

9.52%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,100
2 Bedrooms	$1,300
3 Bedrooms	$1,750
4 Bedrooms	$2,170
5 Bedrooms	$2,517
6 Bedrooms	$2,819
7 Bedrooms	$3,045
8 Bedrooms	$3,197

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,300	$163,850	0.79%	D
3BR	$1,750	$202,962	0.86%	C
4BR	$2,170	$241,469	0.9%	C
5BR	$2,517	$277,813	0.91%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

36,371

Median Household Income

$62,500

Housing Units

11,595

Renter Percentage

36.6%

Occupancy Rate

93.9%

Renter Occupied

3,984

The economics of Section 8 housing in ZIP code 77502, located in Pasadena, Texas, within Harris County, operate based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1200 per month for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to 77502.

In contrast, the local market rent for a similar unit, as indicated by ZORI (Zillow Observed Rental Index), stands at $1,705 per month. Landlords should understand that the SAFMR does not cover the entire market rent, creating a gap between the two figures.

A Section 8 voucher pays a significant portion of the rent but not the entirety. Here’s how it breaks down:

Tenant Portion: Tenants typically pay 30% of their adjusted income towards rent. For example, if a tenant has an adjusted monthly income of $1,000, they would contribute $300 towards the rent.
Voucher Reimbursement: The voucher covers the difference between the tenant's contribution and the SAFMR. In this case, the voucher would cover $900 ($1200 - $300).
Utility Allowances: The voucher program also includes utility allowances, which vary but are generally capped at a certain amount. These allowances do not increase the total voucher payment but can help reduce the tenant's out-of-pocket expenses.

Given these specifics, landlords in ZIP 77502 will receive $900 from the voucher program plus the $300 paid by the tenant, totaling $1200. However, the local market rent for a two-bedroom unit is $1,705, leaving a gap of $505 that landlords must account for if they wish to maintain market competitiveness.

To summarize, the typical reimbursement gap for a two-bedroom unit in ZIP 77502 is a shortfall of $505 per month compared to the local market rent. Landlords must decide whether to accept this gap or adjust their rents to align with the SAFMR to fully utilize the voucher benefits.

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.