Section 8 Fair Market Rent (FMR) for ZIP 78415 - 2027

Investment Score for ZIP 78415

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	$1,070
1 Bedroom	$1,180
2 Bedrooms	$1,420
3 Bedrooms	$1,850
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,850	$199,427	0.93%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78415, TX #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 78415 in 2026 indicate that the maximum allowable rent for a two-bedroom unit is $1360, which represents 29.7% of the median household income of $54,990. This suggests that the FMR is set at a level that is relatively affordable compared to the local income levels. However, without recent Zillow data, it is challenging to directly compare these FMRs to actual rental prices in the area. Given the constraints of the Section 8 program, voucher holders can only afford units up to the FMR. For a two-bedroom unit, this means that landlords must keep their rents below $1360 to attract tenants using Section 8 vouchers. If actual rents exceed these figures, voucher holders will struggle to find suitable housing, potentially leading to a mismatch between supply and demand. #### Affordability & Renter Profile ZIP code 78415 has a population of 43,080, with 39.8% of residents being renters. The occupancy rate stands at 92.7%, indicating a robust demand for rental properties. Given that 29.7% of the median household income is allocated towards a two-bedroom unit, it is clear that many residents are likely to be price-sensitive. The high percentage of renters and occupancy rate suggest that the market is tight, with limited oversupply. The median household income of $54,990 indicates that the majority of residents are middle-class individuals who may rely on assistance such as Section 8 vouchers to manage their housing costs. The affordability of FMRs relative to the median income supports the notion that this area is well-suited for voucher holders, but the lack of recent rental data makes it difficult to assess whether there is sufficient affordable housing available. #### Investor Angle From an investor perspective, the cash flow potential of properties in ZIP code 78415 depends on the actual rental rates compared to the FMRs. Assuming that the actual rental rates align closely with the FMRs, a landlord could expect to receive the following monthly rents: - 0BR: $1030 - 1BR: $1110 - 2BR: $1360 - 3BR: $1790 - 4BR: $2040 To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments associated with rental properties. Without specific property values or expense data, we can infer that if actual rents are near the FMRs, the cash flow would be modest but positive, especially considering the high occupancy rate. The investment grade for this ZIP code would be moderate to good, given the strong demand for rental properties and the relatively low risk associated with Section 8 vouchers. These vouchers provide a stable source of income, as they are government-backed and typically cover the full rent amount. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given that the FMR for a two-bedroom unit is $1360, which is 29.7% of the median household income, it might be more practical to invest in smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1110, which is more affordable for the average resident and could attract a larger pool of tenants. 2. **Utilize Section 8 Vouchers**: Since 39.8% of the population are renters and the occupancy rate is high, leveraging Section 8 vouchers can ensure steady cash flow. Landlords should be aware that the rent for a three-bedroom unit is $1790, which is still within reach for many families, but they should also be prepared to maintain properties to meet the quality standards required by the program. 3. **Monitor Local Rental Prices**: Although there is no recent Zillow data, monitoring local rental prices through other sources such as real estate listings or local rental agencies can help determine if the actual rents are close to the FMRs. This information is crucial for understanding the true market dynamics and making informed investment decisions. #### Bottom Line Based on the provided data, ZIP code 78415 presents a moderately attractive market for Section 8-focused investors. The high occupancy rate and significant proportion of renters indicate strong demand, while the FMRs are set at a level that is relatively affordable compared to the median income. However, the lack of recent rental data introduces some uncertainty. To mitigate this, investors should focus on smaller units where the FMR is lower and more aligned with the average resident's budget. Additionally, ensuring compliance with Section 8 requirements and maintaining property quality will be essential for success. **Recommendation**: **Hold**. Wait for more recent rental data before making a definitive buy decision. The current indicators suggest a stable market, but additional information is needed to confirm the exact rental price landscape and ensure that investments will be cash-flow positive.

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.