Section 8 Fair Market Rent (FMR) for ZIP 77511 - 2027

Investment Score for ZIP 77511

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	$910
1 Bedroom	$1,070
2 Bedrooms	$1,170
3 Bedrooms	$1,590
4 Bedrooms	$1,960
5 Bedrooms	$2,274
6 Bedrooms	$2,547
7 Bedrooms	$2,751
8 Bedrooms	$2,889

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	$1,170	$194,753	0.6%	D
3BR	$1,590	$275,470	0.58%	F
4BR	$1,960	$326,149	0.6%	D
5BR	$2,274	$380,851	0.6%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77511 (Alvin, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 77511 in Alvin, TX, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1230 per month. This figure is crucial for understanding how Section 8 vouchers can be utilized by renters in this area. However, it's important to note that the actual rental market prices can differ significantly from these guidelines. In Alvin, the Zillow median price for a two-bedroom home is $194,316, which translates into a price-to-FMR ratio of 13.2x. This high ratio suggests that actual rental prices could be much higher than the FMR. If we assume a typical rental yield of 5%, the monthly rent for a property priced at $194,316 would be around $809.58, which is below the FMR. However, this doesn't account for the actual rental market dynamics where rents can be significantly higher due to demand and other factors. For voucher holders, the FMR acts as a cap on what they can pay for rent. If the actual market rent for a two-bedroom unit exceeds $1230, voucher holders will face constraints in finding suitable housing. Given the high price-to-FMR ratio, it's likely that many units in the market exceed this limit, making it challenging for Section 8 recipients to find affordable housing. #### Affordability & Renter Profile ZIP code 77511 has a population of 51,892, with 28.7% of residents being renters. The median household income is $74,939, indicating a middle-class community. The occupancy rate stands at 86.7%, suggesting a relatively stable housing market without significant over-supply or shortage. Given that 2BR FMR represents 19.7% of the median income, it implies that renters have a reasonable ability to afford housing based on their income levels. However, the high price-to-FMR ratio indicates that the rental market might be tighter than expected, with many units priced above the FMR. This tightness could make it difficult for lower-income renters to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether properties can generate positive cash flow at the FMR. To assess this, we need to consider the average rental yields and expenses associated with owning a rental property. Assuming a typical rental yield of 5%, a property priced at $194,316 would generate a monthly rent of approximately $809.58. At the FMR of $1230, there is potential for positive cash flow if the property can command a higher rent. However, the high price-to-FMR ratio suggests that the purchase price of properties in this area might be inflated relative to their rental value. To determine the investment grade, we must also consider the operating costs, including property taxes, insurance, maintenance, and management fees. If these costs are high, the net cash flow might still be negative even at the FMR. Without specific cost data, it’s challenging to provide a precise assessment, but the high purchase price relative to FMR suggests caution. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR. For example, a two-bedroom unit at $1230 per month would be ideal for attracting Section 8 voucher holders. Avoid properties priced significantly above the FMR, as they may not be attractive to voucher holders. 2. **Consider Rental Yields**: Given the high price-to-FMR ratio, it’s essential to ensure that the rental yield is sufficient to cover all expenses and generate a profit. A conservative approach would be to target properties with a rental yield closer to 7% to ensure positive cash flow. For instance, a property priced at $175,737 would generate a monthly rent of about $1020, which is closer to the FMR and could potentially offer better returns. 3. **Evaluate Operating Costs**: Before purchasing any property, conduct a thorough analysis of operating costs. Ensure that the total monthly expenses do not exceed the FMR. For example, if a property has monthly expenses of $700, then renting it out at $1230 would leave a net cash flow of $530, which is positive but thin given the high purchase price. #### Bottom Line For Section 8-focused investors, the ZIP code 77511 presents a mixed picture. While there is a substantial renter population and median incomes support affordability, the high price-to-FMR ratio suggests that the market is somewhat overheated. Properties priced significantly above the FMR may struggle to attract voucher holders, leading to potential vacancy issues. **Recommendation**: **Hold**. Wait for market conditions to stabilize or for property prices to adjust downward before investing. Focus on properties that can be rented out at or near the FMR to maximize the chances of attracting Section 8 voucher holders while maintaining positive cash flow.

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.