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 | $1,470 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $251,906 | 0.71% | D |
| 3BR | $2,410 | $345,680 | 0.7% | D |
| 4BR | $2,990 | $464,630 | 0.64% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 77565 in Kemah, TX, must be carefully considered. Firstly, tenant turnover can be a significant issue, especially when comparing the market rent of $1,424 against the Fair Market Rent (FMR) of $1,550 for fiscal year 2024. Landlords may experience higher turnover rates if tenants find they can afford slightly more expensive units outside of the program. Secondly, vacancy exposure is another concern, as the average days on market (DOM) for rental properties in this area is not available, which makes it difficult to predict how long a unit might remain vacant. Lastly, there is a risk of deferred maintenance due to the relatively high typical home value of $358,106 compared to the median household income of $95,268. This disparity suggests that tenants may struggle to contribute to the upkeep of the property beyond their rental payments.
However, these risks are offset by the high renter share in the area, which stands at 50.2%. High renter density generally translates into a higher demand for housing vouchers, making the likelihood of finding eligible tenants more favorable. Additionally, the concentration of renters often indicates a robust local rental market, which can help mitigate some of the financial risks associated with vacancies and maintenance costs.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 77565 presents a compelling opportunity for landlords and small-portfolio investors. The overall risk for a first-time Section 8 landlord in this area is moderate.
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.