Location: Burnet 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $355,323 | 0.6% | F |
| 4BR | $2,490 | $403,920 | 0.62% | D |
U.S. Census Bureau data (2024)
Skeptical investors often question the viability of investing in ZIP 78605, Bertram, TX. Here are some common objections and the data that addresses them.
Objection 1: Will Fair Market Rent (FMR) of $1980 (for ZIP 78605 in fiscal year 2024) cover the mortgage on a $422,242 home?
To evaluate this, we must consider current mortgage rates and the typical down payment required. According to recent data, the average mortgage rate for a 30-year fixed-rate loan is approximately 5%. With a $422,242 home, if an investor were to put down 20%, the mortgage amount would be $337,793.60. At a 5% interest rate, the monthly mortgage payment would be around $1,830, which is slightly above the FMR. However, it's important to note that FMRs are typically lower than market rents, and the average market rent for a 2-bedroom home in ZIP 78605 is $1,372, according to recent listings. This suggests that while FMR might not fully cover the mortgage, market rents could provide a better margin.
Objection 2: Is there enough renter demand at 13.9%?
The 13.9% figure likely represents the percentage of households renting in ZIP 78605. While this percentage is relatively low, it does not necessarily indicate a lack of demand. The total number of households in ZIP 78605 is 2,234, meaning there are roughly 310 rental households. Given the average household size of 2.77 people, this translates to over 800 potential renters. Moreover, the median age in ZIP 78605 is 44.1 years, indicating a mature demographic that may prefer rentals due to lifestyle choices or financial flexibility. The data does not provide a direct measure of demand, but the presence of rental units and their occupancy rates would give a clearer picture.
Objection 3: Will vouchers keep pace with $1,230 market rents?
The trend in voucher usage for ZIP 78605 is not explicitly documented in the available data. However, the U.S. Department of Housing and Urban Development (HUD) adjusts voucher amounts annually to reflect changes in the local housing market. If the current average market rent for a 2-bedroom unit is $1,372, it's reasonable to assume that voucher amounts will be adjusted accordingly to maintain affordability. Investors should monitor local HUD announcements and adjust expectations based on these updates.
In conclusion, while ZIP 78605 presents some challenges, such as slightly higher mortgage payments relative to FMRs, the market rents and mature demographic suggest a steady demand for rental properties. Voucher trends should be closely watched to ensure they align with market rents, providing a reliable income stream for landlords.
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.