Location: Newton County, 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 | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,540 | $228,743 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 77632 is located in Harris County, Texas, and encompasses a diverse suburban neighborhood. With a total population of 22,976, it has a relatively modest rental market share at 20.7%, indicating that the majority of residents own their homes. The median household income stands at $74,418, which places it above the national average, suggesting a stable economic environment. The median home value in this area is $222,892, reflecting an affordable housing market.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 77632 as of the fiscal year 2024 is set at $1,110. This figure is used by the U.S. Department of Housing and Urban Development (HUD) to determine the payment standards for Section 8 vouchers. In comparison, the market rent, as measured by ZORI (Zillow Observed Rent Index), is slightly higher at $1,167. This indicates that landlords participating in the Section 8 program can expect a modest gap between the HUD-set rates and the actual market rates, but it is not substantial enough to significantly impact profitability.
Given these conditions, ZIP 77632 would be suitable for a hands-off voucher operator. The stable income levels and modest rental market suggest that the demand for subsidized housing is steady, and the risk of vacancy is low. However, for a hands-on value-add buyer, there might be limited opportunities to increase rents beyond the FMR due to the close alignment between FMR and market rates. Therefore, any value-add strategy would need to focus on other aspects such as property management efficiency or ancillary revenue streams rather than relying solely on rent increases.
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.