Location: Blanco 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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,650 | $476,576 | 0.35% | F |
| 4BR | $1,720 | $603,994 | 0.28% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking into ZIP 78606 might have several concerns regarding the viability of investing in properties here. Let's address these concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1,110 for ZIP 78606 cover the mortgage on a $540,060 home?
The FMR of $1,110 does not directly indicate the ability to cover a mortgage payment. To understand this, we need to consider the mortgage terms and interest rates. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment for a $540,060 home would be approximately $2940. This amount is significantly higher than the FMR. Therefore, relying solely on the FMR to cover the mortgage would be insufficient. Investors must factor in additional income sources or consider properties with lower purchase prices to align their rental income expectations with mortgage costs.
Objection 2: Is there enough renter demand at 22.9%?
The 22.9% figure likely represents the percentage of households that are renters. In ZIP 78606, this translates to a moderate level of demand. However, the data does not specify the total number of households or the vacancy rate, which are critical for understanding the actual competition for rental units. With a renter population of 22.9%, there is a base level of demand, but it is important to assess the local job market and housing trends to gauge future demand stability.
Objection 3: Will vouchers keep pace with $1,600 market rents?
The voucher program is designed to help low-income families afford housing, but the data provided does not specify the exact amount of vouchers available or their current value. If the voucher amount is less than $1,600, landlords may face difficulties in covering operational costs such as maintenance and utilities. It is crucial to monitor the local HUD office announcements and federal funding updates to anticipate any changes in voucher values and availability. Additionally, landlords should consider the possibility of attracting tenants who do not rely on vouchers to ensure a steady cash flow.
In conclusion, while the data provides insights into the potential challenges and opportunities in ZIP 78606, it is essential to conduct further research to make informed investment decisions. Pay close attention to mortgage terms, local economic conditions, and government assistance programs to balance risk and reward 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.