Location: Madison County, TX | Metro: Grimes County, TX
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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $290,237 | 0.45% | F |
| 3BR | $1,800 | $364,438 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 77872, located in North Zulch, TX, is home to 2,026 residents. With 19.9% of the population being renters, it suggests that this area leans towards homeownership rather than rental living. The median household income stands at $87,188, which is significantly higher than the typical market rent of $766 per month. This indicates that the cost of renting is relatively low compared to the average income level.
To quantify the impact of rent on local incomes, we can calculate that the typical market rent of $766 consumes approximately 8.8% of the median household income. This percentage is derived from dividing the monthly rent by the annual median income and multiplying by 100. Such a low percentage implies that the majority of residents can comfortably afford their rent without it being a significant financial burden.
However, when comparing the market rent to the Fair Market Rent (FMR) of $1,200, which is set for FY 2026 and applies to the metropolitan area, it becomes evident that the actual rents in ZIP 77872 are below the FMR. This discrepancy could indicate that there is less demand for housing vouchers in this area, as the market rents are already lower than the benchmark rates used to determine voucher amounts.
In terms of Section 8 tenant profiles, landlords in ZIP 77872 should expect tenants who are likely to have stable employment and may not rely heavily on housing vouchers. Given the relatively high median income and low market rent, these tenants would typically spend a smaller portion of their income on housing, leaving them with more disposable income for other expenses. While some may still qualify for and seek out Section 8 vouchers, the overall pool of potential tenants appears to be financially capable of meeting their rental obligations without extensive government assistance.
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.