Section 8 Fair Market Rent (FMR) for ZIP 77539 - 2027

Investment Score for ZIP 77539

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	$1,250
1 Bedroom	$1,280
2 Bedrooms	$1,520
3 Bedrooms	$2,050
4 Bedrooms	$2,540
5 Bedrooms	$2,946
6 Bedrooms	$3,300
7 Bedrooms	$3,564
8 Bedrooms	$3,742

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,280	$141,952	0.9%	C
2BR	$1,520	$190,027	0.8%	D
3BR	$2,050	$269,222	0.76%	D
4BR	$2,540	$331,099	0.77%	D
5BR	$2,946	$424,186	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77539 (Dickinson, TX) #### Section 8 Voucher Dynamics In ZIP code 77539, the Fair Market Rent (FMR) values for 2026 are set at $1300 for 0BR units, $1350 for 1BR units, $1600 for 2BR units, $2150 for 3BR units, and $2680 for 4BR units. These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of the unit. However, the actual rental market in Dickinson is significantly higher than these FMRs. For instance, the Zillow median price for a 2BR unit is $187,833, which translates into a monthly mortgage payment of approximately $1,000 assuming a 30-year fixed-rate mortgage at a 4% interest rate. This means that landlords would need to charge more than the FMR to cover their mortgage payments and other expenses. The constraint for voucher holders is clear: they must find units that do not exceed the FMR. In practice, this could be challenging given the high actual rents in the area. The price-to-FMR ratio of 9.8x for a 2BR unit indicates that the actual market value is nearly ten times the FMR, suggesting a significant gap between what voucher holders can afford and what landlords might need to charge to break even. #### Affordability & Renter Profile The population of Dickinson is 49,375, with 24.3% of residents being renters. The median household income is $89,111, indicating a relatively affluent community. The occupancy rate of 93.6% suggests a robust demand for housing, making it a tight market for renters. Given that 2BR units at FMR ($1600) only account for 21.5% of the median income, it implies that many local residents can afford to pay above the FMR without financial strain. However, this also means that voucher holders face a competitive environment where finding affordable units can be difficult. The tight market conditions are further evidenced by the high price-to-FMR ratio, which underscores the challenge for low-income renters who rely on vouchers. With such a significant disparity, it is likely that many voucher holders will struggle to find suitable housing within the stipulated limits, potentially leading to a mismatch between supply and demand for affordable units. #### Investor Angle From an investor perspective, the ZIP code 77539 presents both opportunities and challenges. The FMR for a 2BR unit is $1600, but the actual median rent is much higher, at $187,833 for a 2BR property. This high price-to-FMR ratio of 9.8x suggests that the market is overvalued relative to the FMR. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical operating costs for a rental property. Assuming a 2BR unit with a mortgage payment of $1,000 per month, property taxes of around $1,500 annually (or $125 per month), insurance of about $100 per month, and maintenance costs of $50 per month, the total monthly expenses would be approximately $1,275. At an FMR of $1600, this leaves a net positive cash flow of $325 per month before accounting for any potential vacancy periods or other unforeseen expenses. However, the investment grade for this ZIP is mixed. While there is strong demand for housing, the high price-to-FMR ratio indicates that properties purchased at current market rates would likely not be profitable for Section 8-focused investors. Additionally, the limited pool of voucher holders (only 24.3% of the population) and the tight market conditions suggest that landlords may have difficulty filling units solely with Section 8 tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units like 0BR or 1BR apartments. These units have lower FMRs ($1300 and $1350 respectively) and may be more affordable for voucher holders. This strategy could help mitigate the risk of non-payment and ensure steady occupancy. 2. **Consider Off-Market Properties**: Investors looking to enter the Section 8 market in Dickinson should explore off-market properties or negotiate with sellers to acquire units at a discount. This approach could help bridge the gap between the high market prices and the lower FMRs, making it more feasible to operate profitably while still adhering to the voucher program’s guidelines. 3. **Diversify Tenant Base**: To improve cash flow and reduce dependency on Section 8 vouchers, investors should diversify their tenant base. This could involve targeting a mix of voucher holders and market-rate tenants. By doing so, landlords can leverage the higher median income of the area to attract paying tenants who can afford to pay above the FMR, thereby balancing out the lower rents paid by voucher holders. #### Bottom Line Given the high price-to-FMR ratio and the limited number of voucher holders in Dickinson, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The tight market conditions and the significant gap between FMR and actual rents make it challenging to achieve profitability while strictly adhering to the voucher program’s guidelines. Investors should look for areas with a more favorable price-to-FMR ratio and a larger percentage of renters who rely on vouchers. Alternatively, they could consider investing in smaller units or diversifying their tenant base to include market-rate renters alongside voucher holders.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.