Section 8 Fair Market Rent (FMR) for ZIP 77505 - 2027

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

Investment Score for ZIP 77505

D
Monthly Rent (2BR)
$1,650
Median Price (2BR)
$232,868
1% Rule
0.71%
Annual Yield
8.5%

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$1,360
1 Bedroom$1,390
2 Bedrooms$1,650
3 Bedrooms$2,220
4 Bedrooms$2,760
5 Bedrooms$3,202
6 Bedrooms$3,586
7 Bedrooms$3,873
8 Bedrooms$4,067

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 $1,650 $232,868 0.71% D
3BR $2,220 $277,454 0.8% C
4BR $2,760 $372,992 0.74% D
5BR $3,202 $430,851 0.74% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
23,174
Median Household Income
$98,125
Housing Units
8,794
Renter Percentage
30.9%
Occupancy Rate
94.0%
Renter Occupied
2,557

The ZIP code 77505 in Pasadena, TX, stands out within Harris County due to several key demographic and economic factors. With a population of 23,174 residents, 30.9% of whom rent their homes, the area reflects a significant rental market presence. The median household income in ZIP 77505 is $98,125, placing it above the national average, while the median home value is notably high at $313,350. These figures indicate a relatively affluent community that is also accessible to renters.

Moving to the specifics of Section 8 housing economics, the Fair Market Rent (FMR) for ZIP 77505 in fiscal year 2024 is set at $1,480. This figure is slightly below the market rate, as indicated by the Zillow Rent Index (ZORI), which stands at $1,514. For landlords and small-portfolio investors, this means that while there is a slight discrepancy between the FMR and the market rate, the gap is minimal, making the area attractive for Section 8 tenants without significantly impacting rental income.

When analyzing the overall data signature of ZIP 77505, it can be characterized as stable. The relatively high median income and home values suggest a strong local economy and a solid base of homeownership, which supports long-term stability. Additionally, the close alignment between the FMR and ZORI indicates that the rental market is well-regulated and predictable, further reinforcing the sense of stability. This stability is beneficial for landlords and investors looking for consistent returns and low risk in their investment properties.

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.