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 | $990 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $166,126 | 0.72% | D |
| 3BR | $1,620 | $203,225 | 0.8% | D |
| 4BR | $2,010 | $247,885 | 0.81% | C |
| 5BR | $2,332 | $271,946 | 0.86% | C |
U.S. Census Bureau data (2024)
To decide whether to buy in ZIP code 77530 (Channelview, TX) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1070 cover the debt service on a property valued at $210,955?
No. The FMR of $1070 would likely not be sufficient to cover the debt service on a property priced at $210,955. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would exceed the FMR in this case.
If the answer is No:
The investment does not meet the basic financial threshold for covering the costs associated with the property. Proceeding with a purchase under these conditions would result in a loss. Do not buy in ZIP 77530 for Section 8 purposes.
2) Is the market rent ($1,708 ZORI) above, at, or below the FMR?
Market rent at $1,708 is above the FMR of $1070. This indicates that the rental market in Channelview is stronger than what is covered by Section 8 subsidies.
If the answer is above:
The higher market rent suggests that landlords could potentially attract non-Section 8 tenants who can pay more than the subsidized rate. However, this also means that Section 8 tenants may find it difficult to afford market rates, leading to lower demand for Section 8 properties.
3) Are 30.2% renters combined with an unknown number of days on the market (DOM) enough demand for Section 8?
It depends. With 30.2% of the population being renters, there is a reasonable base of potential tenants. However, the lack of data on the average number of days a property remains on the market makes it challenging to assess how quickly you might fill vacancies with Section 8 tenants. Additionally, the percentage of renters alone does not indicate the proportion of those eligible for Section 8 assistance.
If the answer is It depends:
You need more detailed local data to make a final decision. Specifically, knowing the percentage of renters who are eligible for Section 8 and the average DOM for Section 8 properties would provide a clearer picture of demand. Without this information, the investment in ZIP 77530 for Section 8 purposes is risky and not advisable.
In summary, the FMR does not sufficiently cover the debt service on a $210,955 property, indicating that buying in ZIP 77530 for Section 8 is not financially viable. Even though the market rent is higher, the lack of clear demand signals from the available data suggests caution and further investigation before making any investment decisions.
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.