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 | $1,030 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $159,041 | 0.79% | D |
| 3BR | $1,680 | $223,795 | 0.75% | D |
| 4BR | $2,090 | $286,060 | 0.73% | D |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP code 77562 in Highlands, TX, under the Section 8 program are significant. Firstly, tenant turnover is a critical issue, with market rents currently at $1,058 compared to the Fair Market Rent (FMR) of $1,110 for FY 2024. This discrepancy can lead to frequent tenant changes, which are costly and time-consuming. Secondly, vacancy exposure is a concern, as the Days on Market (DOM) data is not available, indicating a lack of transparency in the local rental market. Lastly, the deferred maintenance risk is considerable due to the typical home value of $220,186 and a median income of $57,364. These figures suggest that homeowners might struggle to keep up with necessary repairs and maintenance, potentially leading to substandard living conditions.
However, these risks must be weighed against the substantial number of renters in the area, with 19.5% of the population being renters. High renter density typically translates into higher demand for housing vouchers, making it easier to find tenants willing to use Section 8 vouchers. This factor can mitigate some of the risks associated with vacancy and turnover rates.
Despite the challenges, the high concentration of renters in ZIP 77562 presents an opportunity for landlords who are prepared to manage the risks effectively. For a first-time Section 8 landlord, the overall risk level in this area is moderate.
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.