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 | $1,210 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $142,942 | 1.03% | B |
| 3BR | $1,980 | $240,823 | 0.82% | C |
| 4BR | $2,460 | $301,660 | 0.82% | C |
| 5BR | $2,854 | $336,679 | 0.85% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77568, located in La Marque, TX, within Galveston County, operate under specific financial guidelines. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1110. This SAFMR figure is unique to this specific ZIP code and represents the maximum amount that the Housing Choice Voucher program will reimburse landlords.
In contrast, the local market rent for a similar two-bedroom unit is significantly higher at $1,969, according to ZORI (Zillow Observed Rent Index). This discrepancy highlights the difference between the subsidized rates and the actual rental market conditions in La Marque.
To understand what a voucher actually pays, it's essential to factor in the tenant portion and utility allowances. Typically, tenants contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month, the tenant would pay around $450 towards the rent. Utility allowances can vary but are generally capped at a certain percentage of the total rent. For simplicity, let's assume a utility allowance of $100.
This means the landlord would receive approximately $1110 from the voucher program, which includes both the tenant's contribution and the utility allowance. Therefore, the total reimbursement received by the landlord would be around $1110.
Given the local market rent of $1,969, the typical reimbursement gap for a two-bedroom apartment in ZIP 77568 is $859. This gap represents the difference between what the market demands and what the Section 8 program offers. Landlords must consider this gap when deciding whether to participate in the Section 8 program for properties in this ZIP code.
While the SAFMR provides a stable and predictable income source, it falls short of the local market rates, leaving a significant surplus for landlords to make up either through additional subsidies, reduced profit expectations, or other means. Understanding these numbers is crucial for landlords and small-portfolio investors looking to navigate the Section 8 program effectively in La Marque, TX.
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.