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 | $1,200 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $158,241 | 0.94% | C |
| 3BR | $1,940 | $223,688 | 0.87% | C |
| 4BR | $2,380 | $305,822 | 0.78% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 77627, which includes Nederland, TX, in Jefferson County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment. For fiscal year 2024, the SAFMR for a 2BR unit is set at $1250. This figure is specific to this ZIP code, reflecting the localized cost of renting in the area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is slightly lower at $1,237. This indicates that landlords participating in the Section 8 program can charge close to the market rate without significantly overpricing their units relative to the local rental market.
A landlord's actual income from a voucher will depend on the tenant's portion of the rent and any utility allowances. The tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 per month, the tenant would contribute approximately $450 toward rent. The remaining amount, up to the SAFMR, is covered by the Housing Choice Voucher program. Therefore, if the landlord charges $1250, the voucher program would cover the difference between the tenant's contribution and the total rent, which is $800.
In addition to covering the rent, the voucher program also provides utility allowances. These allowances vary based on the size of the unit and the location but generally range from $200 to $300 per month. For a 2BR unit, the allowance might be around $250, further supporting the tenant's ability to live comfortably in the property.
Given these factors, landlords in ZIP 77627 can expect a relatively stable and predictable income from Section 8 vouchers. The reimbursement gap or surplus for a 2BR unit is minimal due to the close alignment of the SAFMR and the local market rent. In this case, the SAFMR is $13 higher than the ZORI, meaning landlords would receive a slight surplus when charging the maximum allowable rent under the program. This surplus helps offset administrative costs associated with participating in the Section 8 program.
To summarize, landlords in ZIP 77627 can expect a monthly reimbursement of around $800 from the voucher program for a 2BR unit, plus a utility allowance of about $250. With the SAFMR being only slightly above the local market rent, there is a small surplus of $13 per month, making Section 8 participation financially viable for landlords and small-portfolio investors.
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.