Section 8 Studio Apartment
For Sale
$550,000
8006 Richards St, Houston, TX 77029
Multifamily offering across two Houston properties with studio layouts and voucher-supported occupancy.
Property Size2,100 SF
Days on Market63
Property Features for 8006 Richards St
General Information
Standard status
Active
Size
2,100 SF
Property subtype
Multifamily
Occupancy
95%
Additional Details
Average Monthly Rent
$1,116
Multifamily Units
17
Amenities
85% Seller Financing – Approx. 85% seller-financed LTV with a blended ~6% interest rate minimizes equity requirements and enhances leveraged returns.
Stable Section 8 Income – Average leased rents of $1,116/unit supported by Section 8 provide durable cash flow with reduced collection risk.
Supply-Constrained Infill Location – Inside Houston's 610 Loop in a quiet East Side pocket with limited competing inventory, supporting long-term occupancy and value.
Building Details
Building Size
2,100 SF
Units
6
Listing Agency:
Houston Office
Listed By:
Joshua Kasali · License #License(s): TX: 765958
(713) 452-4260
Source:
Marcusmillichap
Added: Jul 3
Changed: Aug 29
Last Checked: Sep 2 at 1:10PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Houston Office
Investment Insights
Based on property information with market context.
This multifamily offering includes 17 studio units across two Houston properties at 7914 Norvic Street and 8006 Richards Street. The apartments participate in the Section 8 program, with rental support provided through the Housing Choice Voucher Program. The portfolio is presented as a single acquisition comprising both addresses.
The properties are located in Houston’s East Side, inside the 610 Loop. The offering combines two separately addressed apartment buildings within the same broader Houston submarket, providing a straightforward multifamily configuration for evaluating unit-level operations and program participation.
The properties are located in Houston’s East Side, inside the 610 Loop. The offering combines two separately addressed apartment buildings within the same broader Houston submarket, providing a straightforward multifamily configuration for evaluating unit-level operations and program participation.
Key Highlights
- 17‑unit multifamily portfolio across 7914 Norvic Street and 8006 Richards Street
- Section 8 studio units supported through the Housing Choice Voucher Program
- Located in Houston’s East Side inside the 610 Loop
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$23,791
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.33%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$475,820
$475.8K
Cap Rate 7%
$339,871
$339.9K
Cap Rate 9%
$264,344
$264.3K
Market Conditions
NOI Build-Up for 2,100 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$46.1K $21.96/SF
− Vacancy
−$2.9K −$1.36/SF
EGI
$43.3K $20.60/SF
− OpEx
−$19.5K −$9.27/SF
NOI
$23.8K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$475,820
Cap Rate 7%
$339,871
Cap Rate 9%
$264,344
Alternative Uses
Best Use
Apartment 5plus
$339.9K
$297.4K – $396.5K
NOI $23,791 @ 7.0% cap · market cap 4.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$540.0K
$472.5K – $630.0K
NOI $37,800 @ 7.0% cap · market cap 6.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
17
Residential units
Location Intelligence
Trade Area within ½ mile
261
Businesses Nearby
Explore this area
Business Placement
Demographics for 77029, TX
17,044
Population
6,386
Households
2.7
Avg Household Size
36
Median Age
9%
College-Educated
62%
High-School Grad
10.6 sq mi
ZIP Area
1,608
Density / Sq Mi
$49,601
Median Household Income
$32,614
Median Earnings
$1,129
Median Rent
$115,400
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Multifamily offering across two Houston properties with studio layouts and voucher-supported occupancy.
Where is this apartment building located?
The property is located at 8006 Richards St Houston, TX.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 17‑unit multifamily portfolio across 7914 Norvic Street and 8006 Richards Street; Section 8 studio units supported through the Housing Choice Voucher Program; Located in Houston’s East Side inside the 610 Loop
