Location: Brazoria County, TX | Metro: Brazoria County, TX HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The classification of ZIP 77541 (Freeport, TX) as either a high-yield/low-stability market or a steady-cashflow zone depends on the balance between rental yields and market stability indicators. In Freeport, the Fair Market Rent (FMR) for Section 8 housing in fiscal year 2024 is set at $1,130. This is significantly lower than the market rent of $1,501, indicating that landlords participating in the Section 8 program will see a reduced cash flow compared to market rates. However, the median home value in the area stands at $197,802, which is relatively high and suggests that there could be opportunities for higher property values in the future.
Evaluating stability, we find that 30.8% of residents are renters, which is a moderate figure suggesting that while there is a significant portion of the population renting, it's not overwhelmingly high. The Days on Market (DOM) average of 85 days is also indicative of a somewhat stable market, as it is neither excessively long nor short, implying a reasonable turnover rate without extreme fluctuations. Additionally, the median household income of $66,507 provides some insight into the financial health of the tenants, though it is not exceptionally high, it does offer a baseline level of stability.
Given these factors, ZIP 77541 leans more towards being a steady-cashflow zone. While the yield from Section 8 properties is lower than what could be achieved in the open market, the relatively high median home value and moderate percentage of renters suggest that there is a degree of stability in the local real estate market. Furthermore, the income levels provide a modest but consistent stream of rental payments, reducing the risk of tenant defaults. The DOM figure supports this assessment, showing that homes are sold within a reasonable timeframe, which can be beneficial for both long-term investment and potential property flipping strategies.
To summarize, the key figures driving this classification are the FMR of $1,130 versus the market rent of $1,501, a median home value of $197,802, and a median household income of $66,507. These numbers indicate that while the returns might not be as high as in other areas, the market in Freeport offers a reliable and stable environment for real estate investments, particularly for those looking for long-term cash flow rather than quick flips.
Data Sources: FMR data from HUD (2027). 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.