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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $238,602 | 0.7% | D |
| 3BR | $2,120 | $265,025 | 0.8% | D |
| 4BR | $2,490 | $301,399 | 0.83% | C |
U.S. Census Bureau data (2024)
The ZIP code 78617, located in Del Valle, Texas, stands out within Travis County due to its unique demographic and economic characteristics. With a population of 30,756 residents, it has a rental rate of 20.1%, which is slightly below the national average but aligns well with the broader trends in Travis County. The median income in the area is $71,640, reflecting a middle-class community that is financially stable. However, the median home value of $291,192 is notably higher than the typical home values in neighboring areas, indicating a strong local real estate market.
In terms of Section 8 economics, the Federal Market Rent (FMR) for ZIP 78617 in fiscal year 2024 is set at $1,900, while the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,595. This discrepancy suggests that landlords who accept Section 8 vouchers can expect to receive higher rents compared to the local market rates, making it an attractive option for property owners looking to maximize their rental income. The higher FMR also implies that tenants with vouchers can afford to live in more expensive homes than those available at the average market price, potentially leading to increased demand for rental properties in the area.
The data signature for ZIP 78617 indicates a stable environment. Despite the relatively high median home value, the combination of a solid median income and a moderate rental rate suggests that the area is not experiencing rapid changes or speculative real estate activity. Landlords and small-portfolio investors can confidently consider accepting Section 8 vouchers, knowing they will be compensated at a rate above the local market average. This stability, coupled with the favorable voucher economics, positions Del Valle as a secure investment opportunity for those interested in the Section 8 program.
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.