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 | $1,010 |
| 1 Bedroom | $1,040 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $134,691 | 0.91% | C |
| 3BR | $1,660 | $167,462 | 0.99% | C |
| 4BR | $2,060 | $196,823 | 1.05% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 77547, Galena Park, TX, revolve around the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1190. This figure represents the maximum amount that the housing authority will reimburse landlords for rent.
In comparison, the local market rent for a similar unit is slightly lower at $1,157 according to the Census ACS. However, the SAFMR is the critical number here since it dictates the upper limit of the rental subsidy.
A landlord should understand that the actual reimbursement from a voucher includes the tenant's portion of the rent plus any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their income towards rent. If the tenant’s income is $2,000 per month, their portion would be $600. The remaining balance, up to the SAFMR, is covered by the Section 8 program.
Utility allowances can vary but are usually capped at a certain amount. In ZIP 77547, the utility allowance for a two-bedroom unit might be around $200, depending on the specifics of the voucher and the tenant's needs.
To illustrate, if a landlord charges $1190 for a two-bedroom apartment, and the tenant contributes $600, then the Section 8 program would cover the difference. However, if the landlord sets the rent above the SAFMR, they must absorb the cost beyond $1190, as the program will only pay up to this amount.
In practice, this means that for a two-bedroom apartment in ZIP 77547, the landlord could expect a reimbursement of $1190 minus the tenant's contribution, typically leaving a surplus over the local market rent. With a $600 tenant contribution and a $200 utility allowance, the total reimbursement would be $990, creating a surplus of $33 compared to the local market rent of $1,157.
Landlords need to ensure that their units meet the quality standards required by the Section 8 program to avoid any penalties or loss of eligibility. The reimbursement gap or surplus in this case shows that landlords can still achieve market rates while participating in the Section 8 program, with a slight surplus in this example.
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.