Section 8 Fair Market Rent (FMR) for ZIP 77536 - 2027

Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area

Investment Score for ZIP 77536

Monthly Rent (2BR)

$1,460

Median Price (2BR)

$179,438

1% Rule

0.81%

Annual Yield

9.76%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,200
1 Bedroom	$1,230
2 Bedrooms	$1,460
3 Bedrooms	$1,970
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,460	$179,438	0.81%	C
3BR	$1,970	$264,932	0.74%	D
4BR	$2,440	$331,944	0.74%	D
5BR	$2,830	$425,002	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

33,174

Median Household Income

$102,045

Housing Units

12,397

Renter Percentage

20.0%

Occupancy Rate

94.6%

Renter Occupied

2,350

To determine if a landlord should buy in ZIP 77536 (Deer Park, TX) for Section 8 investment, follow these steps:

Step 1: Does the Fair Market Rent (FMR) of $1430 cover the debt service on a property valued at $280,851?

Yes. If the FMR can cover the debt service, then proceed to the next step. For instance, if the annual debt service is $12,000 or less, the monthly FMR of $1430 would suffice.
No. If the FMR cannot cover the debt service, investing in this area for Section 8 purposes is not advisable. For example, if the annual debt service exceeds $17,160 ($1430 x 12 months), the FMR would be insufficient.

Step 2: Is the market rent of $1,661 (ZORI) above, at, or below the FMR?

Above FMR. If the ZORI is higher than the FMR, it indicates that the market rent is more favorable than the government-set rent for Section 8. This could mean that landlords might struggle to fill units with Section 8 tenants but can potentially attract market-rate tenants.
At or Below FMR. If the ZORI is equal to or lower than the FMR, then Section 8 rents align well with market rates, making it easier to find tenants willing to pay the set rent.

Step 3: Are the 20.0% renters and 26-day Days on Market (DOM) sufficient to meet demand?

It depends. With 20.0% of the population being renters, there is a moderate level of rental demand. A DOM of 26 days suggests that properties are rented out relatively quickly, which is positive. However, the overall demand must also consider vacancy rates and competition from other rental properties.

In summary, if the FMR of $1430 covers the debt service on a $280,851 property and the ZORI is at or below this amount, then the answer is yes. The presence of 20.0% renters and a DOM of 26 days indicates reasonable demand. But if the market rent is significantly higher than the FMR, it could make attracting tenants challenging, leading to an it depends outcome based on the landlord's tolerance for risk and willingness to rely on market-rate tenants.

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.