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 | $1,280 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,610 |
| 5 Bedrooms | $3,028 |
| 6 Bedrooms | $3,391 |
| 7 Bedrooms | $3,662 |
| 8 Bedrooms | $3,845 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,310 | $96,912 | 1.35% | A |
| 2BR | $1,560 | $188,164 | 0.83% | C |
| 3BR | $2,100 | $315,046 | 0.67% | D |
| 4BR | $2,610 | $386,337 | 0.68% | D |
| 5BR | $3,028 | $460,121 | 0.66% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77586, El Lago, TX, are defined by the local SAFMR (Small Area Fair Market Rent) and the broader market conditions. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2024 is set at $1,510. This figure represents the maximum amount that the Housing Choice Voucher program will pay toward rent for a unit of this size in ZIP 77586.
The local market rent, measured by ZORI (Zillow Observed Rent Index), is currently $1,853 for a similar two-bedroom property. This indicates that the market rent exceeds the SAFMR by approximately $343.
A landlord participating in the Section 8 program receives a subsidy from the government to cover the difference between the SAFMR and the tenant's portion of the rent. The tenant is responsible for paying 30% of their adjusted income towards rent. If the tenant's income is such that 30% amounts to $453, then the total rent paid would be the sum of the tenant's contribution and the government subsidy.
The government subsidy covers the remaining amount up to the SAFMR. In this case, it would be $1,510 - $453 = $1,057. However, since the market rent is higher at $1,853, the landlord would receive $453 + $1,057 = $1,510 from the tenant and the government combined. This leaves a gap of $1,853 - $1,510 = $343 that the landlord does not receive.
Utility allowances can vary but are generally included in the voucher payment structure. These allowances do not typically bridge the gap between the SAFMR and the market rent. They serve to offset the cost of utilities for the tenant, which can range depending on the household size and local rates. However, these allowances are not additional funds for the landlord.
In summary, for a two-bedroom apartment in ZIP 77586, landlords who accept Section 8 vouchers will receive $1,510 per month, which is less than the market rent of $1,853. This results in a monthly reimbursement gap of $343 for landlords who choose to participate in the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.