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 | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $158,933 | 0.64% | D |
| 3BR | $1,370 | $230,936 | 0.59% | F |
| 4BR | $1,700 | $296,077 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 77575 (Liberty, TX) reveals a unique balance between yield and stability, making it an interesting market for both high-risk and steady-cashflow investment strategies.
On the yield axis, the Federal Market Rent (FMR) for the fiscal year 2024 is set at $990, while the market rent stands at $953. The median home value of $223,651 suggests a significant disparity between rental income and property value, indicating a potentially high-yielding market. This is further supported by the fact that the FMR is higher than the market rent, implying that properties in this area could command slightly above-market rents if managed correctly.
Moving to the stability axis, the data shows that 26.1% of residents are renters, which is a moderate figure. However, the lack of data on the average number of days on market (DOM) suggests some instability in the rental market. Additionally, the median household income of $57,056 provides insight into the financial capacity of potential tenants. While this income level supports the ability to pay the market rent of $953, it also implies that there might be some volatility due to economic factors affecting the lower-income bracket.
To summarize, ZIP 77575 leans towards being a high-yield/medium-stability market. It offers opportunities for higher returns due to the favorable FMR compared to the median home value, but the moderate percentage of renters and the absence of DOM data indicate a market that requires careful tenant selection and management practices to maintain consistent cash flow. This makes it suitable for investors willing to engage in active property management to capitalize on the yield potential while mitigating risks associated with medium stability.
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.