Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 77554, located in Galveston, TX, offers a detailed analysis for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1410 per month. In comparison, the actual market rent, measured by Zillow's ZORI index, stands at $1461. This indicates that voucher tenants will generate marginal cash flow at the FMR rate, with a slight shortfall of $51 per unit when compared to the average market rent.
To further contextualize this, consider the median home value in the area, which is $526,208. Using this figure, we can calculate the rent-to-price ratio, which comes out to approximately 0.28%. This ratio suggests that rental income is relatively low compared to the value of property, which could influence investment decisions based on long-term appreciation rather than immediate rental yields.
The median days on market (DOM) for homes in this area is 149 days, indicating a moderate seller's market. Additionally, only 0.2% of listings have seen price cuts, suggesting strong buyer demand and stable housing prices. These factors point towards a robust local economy and consistent housing values, which can be beneficial for investors looking for stability.
In conclusion, while the cash flow from Section 8 vouchers in ZIP 77554 is marginal, the strong rent-to-price ratio and stable housing market make appreciation and stability the strongest angles for potential investors in this area.
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.