Section 8 Fair Market Rent (FMR) for ZIP 78615 - 2027

Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,637

Median Household Income

$80,938

Housing Units

586

Renter Percentage

17.1%

Occupancy Rate

93.7%

Renter Occupied

A decision tree for evaluating whether to invest in ZIP code 78615 for Section 8 properties starts with understanding the Fair Market Rent (FMR) and how it aligns with the financial obligations of owning a property there. The FMR for ZIP 78615 in fiscal year 2024 is set at $1510. This figure is critical for determining the viability of a Section 8 investment.

Step 1: Debt Service Coverage Ratio (DSCR)

If the FMR of $1510 does not cover the debt service on a property valued at $553,366, the answer is No. A property must generate sufficient income to meet its mortgage payments and other expenses. If the FMR is insufficient to clear these costs, then the investment will not be profitable.
If the FMR of $1510 does cover the debt service, proceed to the next step.

Step 2: Market Rent Comparison

The data indicates that the market rent is currently N/A. This means there's either a lack of recent rental listings or the available data doesn't provide a clear comparison point. Given this uncertainty:

If you can ascertain that the market rent is above the FMR of $1510, the answer is It Depends. While the market rent might offer better returns, landlords should consider the risk of losing tenants who rely on Section 8 vouchers if they exceed the voucher amount.
If the market rent is at or below the FMR of $1510, the answer is Yes. This alignment suggests that landlords can expect stable, government-backed rental income without the risk of exceeding tenant affordability.

Step 3: Demand Assessment

In ZIP 78615, 17.1% of residents are renters, and the Days on Market (DOM) for rentals is listed as N/A. This percentage indicates a moderate level of rental demand, but without a DOM figure, assessing the speed at which units are typically leased is challenging.

If you can confirm that the DOM is low, say under 30 days, the answer is Yes. Low DOM values suggest strong demand, meaning your units are likely to stay occupied, reducing vacancy risks.
If the DOM is high, say over 60 days, the answer is No. High DOM values indicate weak demand, which could lead to prolonged vacancies and reduced income.
If the DOM remains unknown, the answer is It Depends. Strong rental demand (17.1%) could still support an investment, but landlords must be prepared for potential challenges in maintaining occupancy rates.

Ultimately, the decision to invest in ZIP 78615 for Section 8 properties hinges on the ability to cover debt service with the FMR, the relationship between market rents and the FMR, and the strength of rental demand as indicated by DOM. Without concrete figures for market rent and DOM, landlords must weigh the potential risks and rewards carefully.

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.