Section 8 Fair Market Rent (FMR) for ZIP 77572 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 77572 (Houston-The Woodlands-Sugar Land County) are defined by the SAFMR (Small Area Fair Market Rent), which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1330. This figure represents the maximum amount that the government will pay toward a tenant's rent under the Section 8 Housing Choice Voucher program.

To understand the actual reimbursement a landlord receives, it's essential to break down the components of a voucher payment. The tenant is responsible for paying 30% of their adjusted income towards rent. Beyond the tenant's contribution, the government covers the remaining portion up to the SAFMR limit. Additionally, there are utility allowances that vary but can be factored into the overall payment structure.

In ZIP 77572, if the market rent for a two-bedroom unit is higher than the SAFMR, landlords will experience a reimbursement gap. Conversely, if the market rent is lower, they might receive a surplus. However, since the local market rent for ZIP 77572 is currently marked as N/A, we cannot provide an exact comparison. But assuming the market rent aligns closely with the SAFMR, landlords would receive $1330 for a two-bedroom unit.

The typical reimbursement gap or surplus in ZIP 77572 can only be determined once the market rent is known. If the market rent is indeed $1330, then landlords would neither face a significant reimbursement gap nor a surplus. They would receive the full SAFMR amount, making the economic impact neutral in terms of market versus government rates.

Landlords should also be aware that the voucher system includes a requirement for the rental property to pass a housing quality standards (HQS) inspection and must agree to a periodic recertification process to ensure compliance with the program. These administrative aspects, while not directly economic, do factor into the overall decision-making process for participating in Section 8.

In summary, for ZIP 77572, the SAFMR for a two-bedroom unit is $1330, which is the ceiling for government reimbursement under the Section 8 program. Without specific market rent data, it's impossible to calculate the exact reimbursement gap or surplus, but assuming parity, landlords would receive the full SAFMR amount.

Data Sources: FMR data from HUD (2027).

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.