Section 8 Fair Market Rent (FMR) for ZIP 78043 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$950
2 Bedrooms	$1,150
3 Bedrooms	$1,500
4 Bedrooms	$1,550
5 Bedrooms	$1,798
6 Bedrooms	$2,014
7 Bedrooms	$2,175
8 Bedrooms	$2,284

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78043 (Austin, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78043 in Austin, Texas, for 2026 are as follows: - 0BR: $960 - 1BR: $970 - 2BR: $1170 (25.8% of median income) - 3BR: $1510 - 4BR: $1560 Without recent Zillow data, it is challenging to directly compare these FMRs to actual market rents. However, we can infer that the FMRs are likely close to the average rent levels in the area. The Housing Choice Voucher Program (commonly known as Section 8) sets limits on how much a tenant can pay towards their rent based on their income. For voucher holders, the maximum they can contribute towards rent is 30% of their adjusted monthly income. Given the median household income of $54,396, the maximum contribution would be approximately $1,359.90 per month. This means that voucher holders in ZIP 78043 are constrained by the FMRs and must find units within those price ranges. #### Affordability & Renter Profile ZIP code 78043 has a population of 45,760, with 43.5% being renters. The occupancy rate stands at 91.7%, indicating a relatively tight rental market. The median household income of $54,396 suggests that many residents have moderate incomes, making affordability a significant concern. With 2BR units costing $1170, which is 25.8% of the median income, the rent burden is manageable but still substantial for many households. Given the high percentage of renters and the occupancy rate, it is likely that there is a strong demand for rental properties in this area. The tight market conditions mean that landlords have some leverage over pricing, but they must remain competitive with the FMRs to attract voucher holders. #### Investor Angle From an investor perspective, the key question is whether the FMRs provide a positive cash flow. To determine this, we need to consider the typical expenses associated with owning and renting out a property, such as mortgage payments, maintenance, insurance, and property taxes. Without specific cost data, we can make some general assumptions: Assuming a property tax rate of 1.5% and an average home value of around $300,000 (based on historical trends), the annual property tax would be approximately $4,500, or $375 per month. If we also factor in an average maintenance cost of $100 per unit per month and an insurance premium of $100 per month, the total monthly expenses for a 2BR unit would be around $575. At an FMR of $1170, this leaves a potential net cash flow of $595 per month, which is positive but slim. The investment grade for this ZIP code would depend on the overall financial health of the investment, including the cap rate and the stability of the rental market. Given the tight market and the high demand for rental units, the investment grade could be considered moderate to good, assuming the investor can manage costs effectively. #### Specific Actionable Insights 1. **Focus on 2BR Units**: Given the median income and the fact that 2BR units represent 25.8% of the median income, these units are most likely to be occupied by voucher holders. Investing in 2BR units could provide a stable cash flow, although margins will be tight. 2. **Maintain Competitive Pricing**: While the market is tight, landlords should ensure that their rents do not exceed the FMRs significantly to remain attractive to voucher holders. This means keeping rents for 2BR units around $1170 and for 3BR units around $1510. 3. **Optimize Property Management Costs**: Given the slim margins, optimizing property management costs is crucial. This includes reducing maintenance costs through regular upkeep, negotiating lower insurance premiums, and managing property taxes effectively. #### Bottom Line For Section 8-focused investors, ZIP code 78043 presents a moderate opportunity. The tight rental market and high demand for affordable housing make it a viable option, but the slim margins suggest that careful management is necessary to achieve positive cash flow. Therefore, the recommendation is to **Hold** if you already own properties in this area, but **Skip** if you are considering new investments due to the limited financial upside. This analysis is based solely on the provided data and does not account for other factors such as local economic changes, supply and demand dynamics, or specific property conditions. For a more detailed assessment, additional market-specific data would be beneficial.

Data Sources: FMR data from HUD (2027). 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.