Section 8 Fair Market Rent (FMR) for ZIP 77546 - 2027

Investment Score for ZIP 77546

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	$1,500
1 Bedroom	$1,540
2 Bedrooms	$1,830
3 Bedrooms	$2,460
4 Bedrooms	$3,050
5 Bedrooms	$3,538
6 Bedrooms	$3,963
7 Bedrooms	$4,280
8 Bedrooms	$4,494

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
2BR	$1,830	$191,523	0.96%	C
3BR	$2,460	$289,030	0.85%	C
4BR	$3,050	$449,486	0.68%	D
5BR	$3,538	$683,921	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 77546 (Friendswood, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Friendswood, TX, in ZIP code 77546, indicate that a two-bedroom unit should rent for $1,980 per month. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom property is $192,028, which translates into a monthly mortgage payment of approximately $960 assuming a 30-year fixed-rate mortgage at 4%. When considering property taxes, insurance, and maintenance costs, the total monthly cost for landlords would be much higher than the FMR. For instance, if we assume a combined cost of $1,200 for these additional expenses, the total monthly cost would be around $2,160, which exceeds the FMR by $180. This means that voucher holders face significant constraints, as the FMR does not cover the true cost of renting in this area. #### Affordability & Renter Profile Given the high median household income of $123,756, it is clear that Friendswood is a relatively affluent community. Only 24.0% of the population are renters, indicating a strong owner-occupied market. The occupancy rate of 96.3% suggests that the rental market is quite tight, with few vacancies available. The 2BR FMR represents only 19.2% of the median income, making it affordable for many residents. However, the high price-to-FMR ratio of 8.1x indicates that rents are well above what the government considers fair market rates. This tight market and high rent environment make it challenging for low-income renters to find housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 77546 presents a mixed picture. While the rental market is robust and demand is high, the FMR does not align with the actual rental prices. A landlord would need to charge more than the FMR to break even, let alone generate a profit. For example, a two-bedroom unit would likely need to rent for at least $2,160 per month to cover all costs. Given the high median home value and the tight rental market, the investment grade for this ZIP code is moderate to high. Investors should be prepared to either accept lower-than-market returns or seek properties that can be rented at higher rates outside the FMR guidelines. #### Specific Actionable Insights 1. **Focus on Owner-Occupied Units**: Given the high median income and the fact that 76% of the population are homeowners, investors might consider purchasing properties that can be converted into owner-occupied units. This could provide better long-term returns compared to relying solely on the rental market. 2. **Seek Properties Below Market Value**: To ensure cash flow positivity, investors should look for properties that are priced below the market average but still within a reasonable range of the FMR. For instance, finding a two-bedroom property priced at around $180,000 could allow for a rental price closer to the FMR while still providing a decent return on investment. 3. **Consider Multi-Family Developments**: With the high price-to-FMR ratio, multi-family developments could offer a more balanced approach. By diversifying the tenant base, investors can mitigate the risk associated with relying on Section 8 vouchers alone. Additionally, multi-family units often have economies of scale that can help reduce overall costs. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to achieve cash flow positivity using only Section 8 vouchers. Instead, investors might want to explore other areas where the FMR more closely aligns with actual rental prices, or focus on owner-occupied units in this ZIP code for better financial outcomes.

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.