Section 8 Fair Market Rent (FMR) for ZIP 77574 - 2027
Location: Houston-The Woodlands-Sugar Land, TX | Metro: Houston-The Woodlands-Sugar Land, TX HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,220 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
To determine if you should buy in ZIP code 77574 for Section 8 purposes, follow this decision tree:
- Does FMR $1330 (zip FY 2024) clear debt service on a property?
- If the FMR of $1330 does not cover your debt service, then the answer is No. You cannot afford to maintain a property if the rent does not exceed the cost of servicing the mortgage and other debts.
- If the FMR of $1330 does cover your debt service, proceed to the next question.
- Is market rent above, at, or below FMR?
- If market rent is below the FMR of $1330, then the answer is No. This indicates that even though the FMR covers debt service, the local rental market may not support these rates.
- If market rent is equal to or above the FMR of $1330, proceed to the next question.
- Are the percentage of renters and days on the market enough to meet demand?
- If the percentage of renters is low and properties take longer than average to rent (high DOM), then the answer is No. There isn't sufficient demand to justify the investment.
- If the percentage of renters is adequate and properties rent quickly (low DOM), then the answer is Yes. There is enough demand to support Section 8 rentals.
- If the data suggests mixed conditions where the percentage of renters is somewhat supportive but the DOM is slightly higher than desirable, the answer is It Depends. You'll need to assess additional factors such as location specifics, competition, and potential for rent increases.
Note: Due to missing specific percentages of renters and days on the market (DOM), you must gather this information to make an informed decision. Without these metrics, the viability of the investment cannot be conclusively determined.
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.