Location: Brazoria County, 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 | $830 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $247,675 | 0.42% | F |
| 3BR | $1,380 | $372,144 | 0.37% | F |
| 4BR | $1,730 | $500,471 | 0.35% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 77517 in Texas, specifically within Galveston County and Brazoria County, reveals key insights into rental and housing dynamics. The HUD Fair Market Rent (FMR) for ZIP 77517 is set at $1230 per month for fiscal year 2024. In contrast, the Census American Community Survey (ACS) indicates that the average market rent for the area is $971 per month.
This comparison shows that voucher tenants will cashflow at the HUD FMR level, with a substantial margin. Investors can expect a positive cashflow scenario since the FMR exceeds the average market rent by approximately $259 per unit, which translates to a significant buffer for landlords. This positive cashflow potential is further supported by the median home value in the area, which stands at $380,655. Using this figure, we can calculate the rent-to-price ratio, which comes out to be about 0.32%, indicating that rental income is relatively low compared to property values. However, this ratio does not directly impact the cashflow for Section 8 investors, who are paid based on the HUD FMR.
The median Days on Market (DOM) is listed as N/A, and the price-cut share is 0.3%. These figures suggest that the housing market in ZIP 77517 is stable, with homes selling quickly and few requiring price reductions. While these metrics do not directly affect the rental market, they provide context on the overall real estate environment, which can influence long-term investment decisions such as property appreciation.
In conclusion, the strongest investor angle in ZIP 77517 is cashflow. Given the disparity between the HUD FMR and the actual market rent, investors can secure a reliable and consistent cashflow without the need for premium units. This makes Section 8 properties particularly attractive for landlords and small-portfolio investors looking for steady returns.
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.