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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $103,935 | 1.34% | A |
U.S. Census Bureau data (2024)
In ZIP code 77703, the economics of Section 8 housing can be clearly understood by examining the SAFMR (Small Area Fair Market Rent) and the local market rent rates. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1000. This figure represents the maximum amount that the Housing Choice Voucher Program will pay towards rent for this specific ZIP code. On the other hand, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,147.
The SAFMR of $1000 is the baseline for what landlords can expect to receive from the government for a two-bedroom unit. However, the actual reimbursement to landlords is determined by the lower of either the voucher holder's rent contribution plus the utility allowance, or the SAFMR. Here’s how it breaks down:
Adding these together, the total reimbursement to the landlord would be the higher of the tenant's contribution ($300) plus the utility allowance ($150), totaling $450, or the SAFMR of $1000. Given that the local market rent is higher at $1,147, the landlord should anticipate receiving the SAFMR rate of $1000.
This leaves a potential gap between the market rent and the reimbursement rate. To illustrate, if a landlord charges the market rate of $1,147, they would receive $1000 from the government, leaving a shortfall of $147. Conversely, if the landlord sets the rent at the SAFMR rate of $1000, there would be no gap, but the landlord might miss out on earning the higher local market rate.
In conclusion, for a two-bedroom apartment in ZIP 77703, landlords can expect a reimbursement of up to $1000 under the Section 8 program. The typical reimbursement gap when charging market rent is $147, meaning landlords must decide whether to accept a slightly lower rate or risk not renting to tenants with vouchers.
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.