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 | $1,060 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $157,285 | 0.82% | C |
| 3BR | $1,740 | $206,357 | 0.84% | C |
| 4BR | $2,160 | $235,309 | 0.92% | C |
U.S. Census Bureau data (2024)
The ZIP code 77503, located in Pasadena, TX, is a significant market for Section 8 tenants. With a population of 23,866, nearly half (46.8%) are renters, indicating a robust demand for rental properties. This high percentage of renters suggests that there is a substantial pool of potential Section 8 tenants looking for affordable housing options.
The median household income in ZIP 77503 is $66,797, which provides context for evaluating the affordability of typical rents. The average market rent of $1,135 represents approximately 17% of the median household income. However, the Federal Market Rent (FMR) for FY 2024 is set at $1,150, closely matching the market rent, which indicates that the rental prices are in line with federal standards designed to ensure affordability.
In such an environment, landlords can expect a steady flow of Section 8 applicants. These tenants will likely have their rent subsidized to match the FMR, ensuring they pay no more than 30% of their adjusted income towards housing. Given the high percentage of renters and the alignment between market rents and FMR, it's clear that Pasadena, TX, has a strong tenant base that relies on government assistance for housing.
The typical Section 8 tenant in ZIP 77503 will be someone who needs financial support to afford housing in a market where rents consume a considerable portion of income. Landlords should anticipate tenants who are responsible and seek stable living conditions but require the subsidy to make ends meet. With over 46% of the population renting, the competition for rental units is likely fierce, making it important for landlords to understand the nuances of working with Section 8 tenants and the benefits they bring to the rental market.
To summarize, ZIP 77503 is a renter-heavy area with a significant demand for Section 8 vouchers. The typical rent eats into about 17% of the local median income, which is manageable under the voucher program. Landlords should prepare for a high volume of applications from tenants seeking affordable housing solutions through the Section 8 program.
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.