Location: Beaumont-Port Arthur, TX | Metro: Beaumont-Port Arthur, TX MSA
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 | $1,240 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,010 | $218,310 | 0.92% | C |
U.S. Census Bureau data (2024)
The ZIP code 77611 is situated in a suburban area of Houston, Texas, characterized by a relatively modest population size of 10,112 residents. This neighborhood has a significant rental market, with 23.8% of the population being renters, indicating a steady demand for rental properties. The median household income in the area is strong at $92,040, which suggests that residents have the financial capacity to afford housing costs. However, the median home value stands at $204,076, reflecting an affordable market for both homeowners and potential investors.
Moving into the economic specifics of renting, the Fair Market Rent (FMR) for ZIP 77611 as of the fiscal year 2024 is set at $1,100. This figure contrasts with the actual market rent, known as the Zillow Observed Rental Index (ZORI), which is currently $1,265. This discrepancy means that landlords who participate in the Section 8 program can expect a slightly lower rental income compared to the market rate, but still maintain a reasonable cash flow given the local economic conditions.
When considering whether ZIP 77611 fits a hands-off voucher operator or a hands-on value-add buyer, the data points towards a mixed strategy. For hands-off operators, the consistent demand for rentals and the manageable gap between FMR and market rents make it a viable option. However, for those interested in a more active role, there's potential to increase property values and rents through renovations or improvements, leveraging the higher market rent to achieve better returns.
In summary, ZIP 77611 offers a balanced opportunity for Section 8 investors. It supports a passive investment approach with stable tenant demographics and income levels. Yet, it also allows for a more dynamic strategy where proactive management and property enhancements can lead to greater profitability. The key lies in understanding the local market dynamics and aligning investment strategies accordingly.
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.