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 | $1,210 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $172,087 | 0.85% | C |
| 3BR | $1,980 | $232,054 | 0.85% | C |
| 4BR | $2,460 | $282,896 | 0.87% | C |
| 5BR | $2,854 | $336,918 | 0.85% | C |
U.S. Census Bureau data (2024)
Baytown’s 77521 ZIP code serves as a diverse, industrial-anchored suburb located along the Houston Ship Channel. The local economy is heavily influenced by the massive ExxonMobil Baytown Complex, one of the largest refining and petrochemical facilities in the United States, which provides a steady base of employment but also subjects the area to boom-bust cycles tied to energy prices. Neighborhoods in this sector generally feature a mix of mid-20th-century single-family homes and newer developments, offering a blue-collar atmosphere with convenient access to Interstate 10 for commuting west toward Houston proper.
From a strictly financial perspective, the math reveals a challenging spread for voucher landlords. The FY2026 HUD Fair Market Rent for a 2-bedroom unit is set at $1,540, yet current market rent data sits at $1,517, creating a negligible gap of $23 in your favor. Investors looking at acquisitions should note the median home value is $254,833, with properties sitting on the market for a median of 60 days. While prices are relatively affordable compared to the broader metro, the tight rent spread means voucher payments do not significantly outperform standard market rates in this specific ZIP code.
The tenant demand profile is defined by a 41.8% renter share and a median household income of $73,629. This income level suggests that while many residents can afford market-rate housing, there is still a substantial portion of the population that benefits from rental assistance, particularly among service workers supporting the industrial sector. The area offers solid public schools within the Goose Creek Consolidated Independent School District, which helps attract families seeking stability. However, public transit options are limited compared to the urban core, meaning tenants typically require personal vehicles for employment commutes.
The Section 8 verdict for 77521 leans toward stability rather than high-yield cash flow. Because the 2BR FMR exceeds the market rent by only $23, the play here is not a premium on subsidized payments, but rather the reliability of the government guarantee in a blue-collar market. With a median 2BR sale price of $171,959 and homes moving in two months, the strongest angle is acquiring lower-cost inventory to hold for long-term appreciation, using the voucher program to minimize vacancy risk rather than to spike rents.
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.