Location: Austin-Round Rock-San Marcos, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| 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 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 78622, located within the Austin-Round Rock-San Marcos, TX MSA, reveals several key points. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1720. However, due to the lack of available market rent data for comparison, we must rely on other indicators to assess the viability of voucher tenants in this area.
The median home value in ZIP 78622 is $229,312. To derive the rent-to-price ratio, we can use the FMR as a proxy for rental income. Assuming a typical mortgage payment (including principal, interest, taxes, and insurance) aligns closely with the FMR, the ratio suggests that properties in this area are reasonably priced relative to potential rental income. This makes it possible for voucher tenants to cashflow at the FMR level, although the exact margin will depend on individual property expenses.
The absence of day median Days on Market (DOM) and the percentage of price cuts indicates that there isn't significant fluctuation in the housing market that would affect the decision between renting and buying. Given the strong demand for affordable housing in the Austin metropolitan area, investors can expect stable occupancy rates and consistent cash flow from voucher tenants.
The strongest angle for Section 8 investors in ZIP 78622 is cash flow. With the HUD FMR set at $1720, landlords can secure reliable monthly payments that cover their mortgage and operational costs, leading to positive cash flow. Additionally, the relatively low median home value supports a favorable rent-to-price ratio, which is beneficial for both cash flow and long-term investment stability.
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.