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 | $1,500 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,780 | $257,389 | 0.69% | D |
| 3BR | $2,400 | $318,441 | 0.75% | D |
| 4BR | $2,980 | $424,745 | 0.7% | D |
| 5BR | $3,457 | $539,474 | 0.64% | D |
U.S. Census Bureau data (2024)
League City (77573) is a master-planned suburban hub located southeast of Houston along the Clear Creek corridor, characterized by a mix of waterfront properties and expansive family subdivisions. This area is largely defined by its relationship to the aerospace and healthcare industries, with the University of Texas Medical Branch (UTMB) serving as a major regional employer and economic anchor. The neighborhood offers a quiet, family-oriented atmosphere with easy access to Interstate 45, making it a practical choice for commuters working in the Houston metro area.
From a financial perspective, the math for Section 8 investors requires close attention. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $1,910, while current market rents (Zillow ZORI) sit at $1,724, creating a premium gap of $186 in your favor. However, acquisition costs are notable, with a median home value of $382,845 and median days on market at 53 days. When comparing the 2026 FMR ladder against the current HUD SAFMR of $1,700, investors should prepare for an upward adjustment in payment standards over the next two years.
The tenant pool here is solid, bolstered by a low renter share of 24.2% and a robust median household income of $122,722. While the high income suggests a population that can easily afford market rates, the local schools, such as those in the Clear Creek Independent School District, consistently receive high ratings, driving consistent family relocation. Voucher demand in this specific ZIP is often tied to workers seeking quality school districts without the premium price point of inner-loop Houston neighborhoods.
The strongest investor angle in 77573 is stability and appreciation rather than aggressive cash-flow. With median home values approaching $383,000 and rents hovering near $1,700-$1,900, the cap rate compression means you are betting on long-term asset growth in a high-quality suburb. The modest 53-day market turnover indicates a liquid market, but the high entry cost relative to rents requires a buy-and-hold strategy to realize genuine returns.
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.