Location: Austin-Round Rock-San Marcos, 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 | $1,570 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,970 | $292,334 | 0.67% | D |
| 3BR | $2,480 | $373,779 | 0.66% | D |
| 4BR | $2,920 | $532,463 | 0.55% | F |
| 5BR | $3,387 | $748,415 | 0.45% | F |
U.S. Census Bureau data (2024)
Cedar Park (ZIP 78613) is a rapidly growing suburban hub in Williamson County, characterized by master-planned communities and a family-friendly atmosphere. The area offers a high quality of life with abundant parks, a highly acclaimed school district, and convenient retail access. Major employers like the Cedar Park Regional Medical Center provide stable local jobs, reinforcing the neighborhood’s reputation as a desirable residential enclave rather than a transient urban core.
From a financial standpoint, the data reveals a clear disconnect between market rates and HUD payment standards. The HUD Fair Market Rent (FMR) for a 2-bedroom unit is $2,000, yet the current market rent (Zillow ZORI) sits at just $1,492. This creates a premium gap of $508 per month if you secure a tenant at the FMR ceiling. Meanwhile, the median home value is $466,166, and properties are moving slowly with a median of 72 days on market. Based on these figures, a standard voucher tenant would cash-flow significantly better than a market-rate tenant, provided the unit can pass the Housing Quality Standards inspection.
The tenant pool here is robust, supported by a 36.1% renter share and a high median household income of $125,487. While this income level suggests a population that can afford market rents, the substantial FMR gap indicates that Section 8 tenants are effectively over-subsidized for this specific ZIP code. With top-rated schools and major highways nearby, demand for housing remains consistent, though landlords should note that stricter local property maintenance standards are common in this Austin suburb.
The strongest investor angle in 78613 is cash flow via the subsidy premium. With market rents lagging $508 below the 2BR FMR, a Section 8 unit offers a revenue buffer that market leases simply cannot match. However, investors must be prepared for slower turnover, given the 72-day days-on-market metric, and ensure properties meet the higher expectations of this affluent community.
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.