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 | $191,002 | 0.63% | D |
| 3BR | $1,620 | $292,952 | 0.55% | F |
| 4BR | $2,010 | $377,915 | 0.53% | F |
| 5BR | $2,332 | $422,917 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 77535, located in Dayton, TX, within Liberty County, stands out due to its relatively high median income and home values compared to national averages. With 39,504 residents, this area has a rental rate of 16.2%, indicating that a majority of the population owns their homes. The median income of $84,497 suggests that the community has a strong economic base, while the median home value of $319,037 reflects a robust real estate market.
When it comes to Section 8 housing, the ZIP code 77535 offers a unique economic landscape. The Fair Market Rent (FMR) for the area, set at $1,110 for the fiscal year 2024, is significantly lower than the market rent, which is measured at $1,361 using the ZORI index. This disparity means that landlords accepting Section 8 vouchers in ZIP 77535 will receive a subsidy that covers less than the actual market rent. As a result, landlords must carefully consider the net income they will receive from these vouchers, factoring in the difference between the FMR and ZORI rates.
The data signature for ZIP 77535 reads as stable, given its high median income and home values. However, the discrepancy between FMR and market rents presents a transitional challenge for landlords who might be considering participation in the Section 8 program. It's important for landlords to weigh the benefits of long-term tenant stability against the potential reduction in rental income when deciding to accept Section 8 vouchers in this area.
To summarize, ZIP 77535 is a prosperous area with a strong homeownership trend and a solid economic foundation. For those interested in the Section 8 program, the key point is the lower FMR compared to the market rent, which could affect the decision-making process for landlords and small-portfolio investors.
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.