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 | $1,260 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,290 | $121,294 | 1.06% | B |
| 2BR | $1,530 | $241,493 | 0.63% | D |
| 3BR | $2,060 | $284,597 | 0.72% | D |
| 4BR | $2,560 | $385,839 | 0.66% | D |
U.S. Census Bureau data (2024)
The market in ZIP 77551, Galveston, TX, reveals a dynamic equilibrium between supply and demand. With a Fair Market Rent (FMR) set at $1,310 for the fiscal year 2024, and a current market rent of $1,179 according to ZORI, there's a notable gap indicating that rents are below the threshold deemed fair by HUD. This suggests that landlords might have room to adjust their rental prices upwards without losing tenants.
A low price-cut share of 0.2% points to a market where properties are generally priced correctly, or slightly above, what buyers are willing to pay. This is further supported by the days on market (DOM) figure of 107 days, which is relatively average and doesn't indicate a glut of unsold homes. The median home value stands at $246,026, positioning it as an affordable area, particularly when considering the local rental rates.
The 51.8% renter share highlights a significant portion of the population that prefers or needs to rent rather than own property. This high percentage of renters can be indicative of long-term housing pressure, as it signals a persistent demand for rental properties. Landlords and small-portfolio investors should take note of this trend, as it suggests a stable tenant base that could support rental investments over the long term.
In summary, ZIP 77551 presents a market where demand for rentals is strong, and supply is well-matched to this demand. Rents are currently lower than the fair market rate, providing opportunities for landlords to increase income. The substantial renter share indicates enduring pressure on the rental market, making it a viable option for those looking to invest in a steady housing sector.
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.