Location: Brazoria County, TX | Metro: Brazoria County, 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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $134,875 | 0.91% | C |
| 3BR | $1,660 | $253,935 | 0.65% | D |
| 4BR | $2,060 | $331,565 | 0.62% | D |
U.S. Census Bureau data (2024)
The ZIP code 77531, located in Clute, TX, presents an interesting scenario for real-estate investors looking into the Section 8 housing market. The Fair Market Rent (FMR) for fiscal year 2024 is set at $1210. This figure is significantly higher than the local market rent of $912, indicating a potential for higher yields when participating in the Section 8 program. However, the median home value in the area stands at $213,574, which is notably higher than both the FMR and market rent figures. This suggests that while there is a premium for rental properties under the Section 8 program, the capital investment required to enter the market is also substantial.
On the stability axis, the data reveals that 47.7% of residents are renters, which is a moderate percentage but does not indicate a highly stable rental market. The lack of data on days on market (DOM) could suggest that the market is not heavily saturated with rental properties, which might impact the ease of finding tenants. Additionally, the average household income in the area is $73,240, which is relatively low compared to the national average, potentially affecting the financial stability of the tenants and the overall cash flow predictability.
Given these factors, ZIP 77531 leans towards being a steady-cashflow zone. While the yield from participating in the Section 8 program is attractive due to the higher FMR compared to market rent, the moderate percentage of renters and lower average income indicate that the market is not prone to high volatility. The significant difference between the FMR and the median home value also suggests that the returns are likely to be moderate rather than high, making it less suitable for a high-yield/low-stability 'flip-style' market approach.
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.