Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 78602, Bastrop, TX, stands at $89,968. This figure places affordability of housing in a critical context. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,876. In contrast, the Fair Market Rent (FMR) set for the fiscal year 2024 is $1,630, which represents the typical amount paid for rental housing by moderate-income households.
The disparity between the ZORI and the FMR highlights a significant affordability gap for renters. At $1,876, the market rate is notably higher than the government-set FMR, indicating that many renters might struggle to pay the going rate without financial assistance. For those relying on Section 8 vouchers, the maximum allowable rent is tied to the FMR, thus setting a cap on what they can afford.
Bastrop has a rental population of 29.2%, out of a total population of 38,190. This means approximately 11,164 residents are renters. Given the affordability gap, landlords face a competitive landscape where a substantial portion of potential tenants may prefer or require subsidized housing options over paying the full market rate.
The takeaway for landlords considering their strategy is clear: focusing solely on cash-paying tenants risks overlooking a large segment of the market. By accepting Section 8 vouchers, landlords align themselves with a government-supported payment structure that ensures steady, reliable income at a rate of $1,630. While this may be lower than the market rate, it offers a stable tenant base and reduces vacancy rates, which can be beneficial in a competitive rental market.
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.