Location: Milam County, TX | Metro: Austin-Round Rock-San Marcos, 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 | $1,330 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $235,491 | 0.9% | C |
U.S. Census Bureau data (2024)
The investment landscape in ZIP 76511 presents several challenges for landlords and small-portfolio investors considering Section 8 properties. Tenant turnover is a significant concern, especially when comparing the market rent of $774 to the Fair Market Rent (FMR) of $1470 for FY 2024. This disparity suggests that tenants may struggle to afford higher rents once their voucher expires, leading to increased turnover rates. Additionally, the vacancy exposure is notable due to the lack of data on Days on Market (DOM), indicating potential difficulty in filling vacancies quickly. The typical home value in the area stands at $218,312, while the median income is $69,286, which can lead to deferred maintenance issues as lower-income households might not have the financial flexibility to cover unexpected repairs.
However, these risks must be weighed against the high concentration of renters in ZIP 76511, with 15.9% of the population being renters. High renter density often translates into a robust demand for housing vouchers, which can stabilize occupancy and provide a steady stream of rental income. The presence of Section 8 tenants can also help mitigate the risk of prolonged vacancies, as the government-backed program ensures timely payments.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 76511 is moderate. While there are considerable challenges such as tenant turnover and deferred maintenance, the high renter density offers a counterbalance by ensuring strong demand for subsidized housing.
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.