Section 8 Fair Market Rent (FMR) for ZIP 78258 - 2027

Investment Score for ZIP 78258

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,400
1 Bedroom	$1,520
2 Bedrooms	$1,830
3 Bedrooms	$2,370
4 Bedrooms	$2,750
5 Bedrooms	$3,190
6 Bedrooms	$3,573
7 Bedrooms	$3,859
8 Bedrooms	$4,052

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,370	$415,765	0.57%	F
4BR	$2,750	$519,529	0.53%	F
5BR	$3,190	$630,068	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78258 (Austin, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78258 in Austin, Texas, indicate that the rent for a two-bedroom unit is $1820, which represents approximately 18.5% of the median household income of $117,835. This suggests that the rent is relatively affordable compared to the local income levels. However, without recent Zillow data, it is challenging to directly compare these FMRs to actual market rents. Typically, actual market rents can be higher than FMRs, especially in a high-demand area like Austin. For voucher holders, the primary constraint is the limited number of units available that accept Section 8 vouchers. Additionally, landlords may have their own criteria for accepting tenants, which can further limit options for voucher holders. #### Affordability & Renter Profile ZIP code 78258 has a population of 52,448, with 45.1% of residents being renters. The occupancy rate stands at 93.6%, indicating a tight rental market where most available units are occupied. Given the median household income of $117,835, the rent for a two-bedroom unit at $1820 is relatively affordable, but this may not be the case for lower-income households who rely on Section 8 vouchers. The high median income suggests that the typical renter in this area is likely to be employed in high-paying industries such as technology, healthcare, or finance. These individuals may have stable incomes and could afford higher rents, making the market competitive for both voucher holders and non-voucher holders alike. #### Investor Angle From an investor's perspective, the ZIP code 78258 appears to be a cash-flow positive area at the Fair Market Rent (FMR) levels. The median household income of $117,835 indicates that there is a strong demand for rental properties, particularly from higher-income earners. However, the investment grade would depend on the specific property type, location, and condition. Given the tight market conditions and high occupancy rates, investors who can offer well-maintained and desirable units may find success in attracting tenants, including those with Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: With the FMR for a two-bedroom unit at $1820, which is 18.5% of the median household income, investors should consider acquiring or developing two-bedroom units. This size is likely to attract a broad range of tenants, including those with Section 8 vouchers, due to its affordability relative to the local income levels. 2. **Consider Lower-Income Areas Nearby**: Since 78258 is a relatively affluent area, investors might want to look into nearby ZIP codes with lower median incomes to find more affordable properties that still benefit from Austin’s strong rental market. This strategy can help maximize returns while catering to the needs of lower-income households. 3. **Engage with Local Landlords and Property Managers**: To better understand the dynamics of the rental market and the willingness of landlords to accept Section 8 vouchers, it is crucial to engage with local property managers and landlords. This can provide valuable insights into the specific challenges and opportunities faced by voucher holders in the area. #### Bottom Line Given the high median income, strong rental demand, and tight market conditions, ZIP code 78258 presents a favorable environment for investors focusing on Section 8 vouchers. The recommendation for this ZIP code is to **Buy**, particularly if you can secure properties that are well-suited for families and offer amenities that appeal to a broad range of tenants. However, investors should be prepared to navigate the complexities of working with Section 8 vouchers and ensure that their properties meet the necessary standards to attract and retain tenants effectively.

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.