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 | $1,330 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $104,721 | 1.31% | A |
| 2BR | $1,620 | $118,177 | 1.37% | A |
| 3BR | $2,180 | $261,461 | 0.83% | C |
| 4BR | $2,710 | $425,703 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP code 77598 is situated in a part of Houston, Texas, known for its diverse population and significant rental market presence. With a total population of 26,110 residents, it stands out due to the high percentage of renters at 76.9%, indicating a strong demand for rental properties in the area. The median household income in ZIP 77598 is $60,977, which places it above the national average, suggesting a relatively affluent demographic. Despite this, the median home value is $258,714, making homeownership less accessible compared to other areas in Houston.
Moving into the economic analysis of renting, the Fair Market Rent (FMR) for ZIP 77598 in fiscal year 2024 is set at $1,480, reflecting the government's assessment of what constitutes a reasonable rent price for the area. This figure is slightly higher than the actual market rent, which is estimated at $1,408 based on ZORI (Zillow Observed Rental Index). The difference between the FMR and the market rent can be seen as an opportunity for landlords who participate in the Section 8 program, as they can potentially receive a higher reimbursement rate from the government than the typical market rent.
Given these factors, ZIP 77598 presents a favorable environment for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means they can maintain their properties with minimal effort while still receiving adequate compensation through the Section 8 program. On the other hand, value-add buyers can leverage the relatively lower median home value and higher FMR to renovate or improve properties, thereby increasing their rental income and property value over time. The strong rental market and the discrepancy between FMR and actual rents make ZIP 77598 an attractive investment location for those interested in Section 8 properties.
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.