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 | $1,280 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $282,287 | 0.74% | D |
U.S. Census Bureau data (2024)
16.4% of residents in ZIP code 77514 are renters, indicating a moderate demand for rental properties in the area. The $1050 Fair Market Rent (FMR) for zip code 77514 as of fiscal year 2024 provides a benchmark for rental pricing, though it's worth noting that the actual market rent, according to Census ACS data, stands at $1,583. This suggests that landlords can potentially charge above the FMR, capturing a premium in a competitive market. The median home value in the region is $268,908, which reflects the overall housing affordability and property values. Given the $85,139 median income, residents have a reasonable capacity to pay higher rents, supporting the current market rates. The N/A-day Days on Market (DOM) figure indicates that homes are either selling quickly or that there isn't enough data to provide an accurate average, which could be a positive sign for quick turnover in real estate investments. However, the 0.2% price-cut share shows that very few listings require price reductions to attract buyers, suggesting strong buyer interest and stable property values.
Investors considering Section 8 participation should note that while the FMR is set at $1050, the market rent is significantly higher at $1,583, meaning that landlords might find themselves with lower rental income compared to market rates if they opt for Section 8 tenants. Yet, the stability provided by government-backed rental payments and the lower vacancy risk associated with Section 8 can offset the lower rental rate. In ZIP 77514, the decision to participate in Section 8 programs hinges on balancing these factors against the potential for higher market rents.
Verdict: Section 8 participation in ZIP 77514 is viable but comes with a trade-off of lower rental income compared to market rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.