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 | $1,330 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $359,620 | 0.46% | F |
| 3BR | $2,120 | $442,689 | 0.48% | F |
| 4BR | $2,490 | $456,126 | 0.55% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 78616, located in Caldwell County, Texas, can be dissected into several key components to provide clarity for landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1470. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program.
In contrast, the local market rent for a two-bedroom unit in ZIP 78616 is $1362 according to the latest Census ACS (American Community Survey) data. This indicates that the SAFMR is higher than the average market rent, which can be beneficial for landlords who might otherwise receive lower rents from other sources.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a household in this area, the tenant would contribute approximately $411 towards the rent ($1362 * 0.30).
The remaining amount is covered by the housing authority. In this case, the housing authority would reimburse the landlord the difference between the SAFMR and the tenant’s contribution. Thus, the housing authority would pay $1059 ($1470 - $411) for a two-bedroom apartment. However, it's important to note that this amount does not include utility costs.
Utility allowances vary but are typically around $300 per month for a two-bedroom apartment. These allowances are intended to cover the tenant's share of utilities, ensuring that the overall cost remains affordable. Therefore, if a landlord includes utilities in the rental price, the housing authority will also cover these costs up to the allowance limit.
In ZIP 78616, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus. Given the SAFMR of $1470 and the local market rent of $1362, landlords can expect to receive slightly more than the market rent when all components of the voucher payment are considered. This surplus can range from $108 to $408 per month, depending on whether utilities are included in the rent and the specific utility allowance provided.
To summarize, landlords in ZIP 78616 should understand that the SAFMR sets a higher standard for rent compared to the local market rate, leading to a potential surplus when the voucher and tenant contributions are factored in. This economic advantage makes participating in the Section 8 program a viable option for securing stable tenants and receiving competitive rental payments.
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.