Location: Llano County, TX | Metro: Llano County, TX
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 | $770 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $292,134 | 0.35% | F |
| 3BR | $1,410 | $421,714 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP 78609, located in Buchanan Dam, TX, within the Llano County area, presents a strategic opportunity for inclusion in a Section 8 portfolio. This ZIP code should be considered an appreciation play due to its unique characteristics.
The Federal Market Rent (FMR) for the Buchan Dam, TX metro area is projected at $980 for fiscal year 2026. In comparison, the current market rent stands at $651, indicating a significant undervaluation relative to federal standards. The median home value in the area is $363,170, which further supports the notion that property values have room to grow. The low price-cut share of 0.1% suggests that properties in this area are generally listed at fair market values, without the need for substantial discounts to attract buyers. Additionally, the N/A-day Days on Market (DOM) implies that homes in this area sell quickly once they are listed, often without spending considerable time on the market.
These factors combined suggest that ZIP 78609 is poised for property value appreciation. As the rental market aligns closer to the FMR over time, landlords and investors can expect their property values to rise, providing a solid appreciation play within their Section 8 portfolio. While the median income of $64,418 indicates a modest economic base, it does not detract from the potential for property value growth.
Although the 26.8% renter share could also make this ZIP code a diversifier, given the current market conditions and the projected FMR, the primary focus should be on its potential as an appreciation play. Landlords and small-portfolio investors looking to capitalize on future value increases should consider adding properties in ZIP 78609 to their portfolios.
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.