Section 8 Fair Market Rent (FMR) for ZIP 78626 - 2027

Investment Score for ZIP 78626

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,580
1 Bedroom	$1,670
2 Bedrooms	$1,980
3 Bedrooms	$2,500
4 Bedrooms	$2,930
5 Bedrooms	$3,399
6 Bedrooms	$3,807
7 Bedrooms	$4,112
8 Bedrooms	$4,318

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,980	$304,959	0.65%	D
3BR	$2,500	$321,819	0.78%	D
4BR	$2,930	$375,533	0.78%	D
5BR	$3,399	$465,892	0.73%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78626 (Georgetown, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Georgetown, TX, in ZIP code 78626, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1970. However, the actual rental market in this area is significantly higher. The Zillow median price for a two-bedroom home is $307,188, which translates to a monthly rent of approximately $1300 based on typical mortgage payments. This indicates that the actual rent for a two-bedroom unit is likely much higher than the FMR, given the high price-to-FMR ratio of 13.0x. This means that Section 8 voucher holders face significant constraints when trying to find suitable housing. The FMR of $1970 is only 23.5% of the median household income of $100,431, suggesting that landlords might be hesitant to accept vouchers due to the limited coverage compared to market rates. In essence, the gap between FMR and actual rents is substantial, making it difficult for voucher holders to secure housing without additional subsidies or assistance. #### Affordability & Renter Profile Georgetown has a population of 48,072, with 38.2% of residents being renters. This indicates a relatively strong rental market, as nearly 40% of the population relies on renting their homes. The occupancy rate of 94.1% suggests that the rental market is quite tight, with most units occupied. Given the high median household income and the fact that 23.5% of this income is allocated to a two-bedroom unit, the overall affordability for renters is moderate. However, for lower-income individuals who rely on Section 8 vouchers, the market is challenging due to the high actual rents compared to the FMR. The renter profile in Georgetown is diverse but leans towards middle to upper-middle class individuals. With a median household income of $100,431, many renters can afford higher rents, which aligns with the local market conditions. However, there is still a segment of the population that relies on affordable housing options, including those who use Section 8 vouchers. The high price-to-FMR ratio indicates that the market is tight and potentially overpriced relative to what the government deems fair, creating a situation where affordability is a concern for low-income households. #### Investor Angle From an investor's perspective, the ZIP code 78626 presents both opportunities and challenges. The high median household income and the strong demand for rentals suggest that the area could be attractive for investment. However, the cash flow potential at the FMR level is limited. For example, a two-bedroom unit with an FMR of $1970 would need to generate sufficient returns to cover the high property costs associated with the area. Given the Zillow median price of $307,188, the monthly mortgage payment alone would likely exceed the FMR, especially considering property taxes and maintenance costs. The investment grade for this ZIP code would be considered moderate to high risk. While the demand for rentals is strong, the limited coverage of FMR compared to actual rents means that investors might struggle to find enough tenants willing to pay the full market rate. Additionally, the high price-to-FMR ratio implies that properties are overvalued relative to what the government subsidizes, which could lead to financial strain if too many units are rented at FMR levels. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median household income and the tight rental market, investors should focus on targeting higher-income renters who are more likely to pay market rates. This could involve developing or renovating properties to appeal to this demographic, such as adding amenities like high-speed internet, modern appliances, and energy-efficient features. 2. **Consider Mixed-Income Developments**: To balance the needs of both higher-income and lower-income renters, investors might consider mixed-income developments. These projects can include a mix of market-rate units and affordable units, ensuring a steady stream of income while also providing housing options for those who rely on Section 8 vouchers. 3. **Utilize Government Programs Beyond Section 8**: Investors should explore other government programs that provide additional subsidies or incentives for affordable housing. For instance, the Low-Income Housing Tax Credit (LIHTC) program can offer tax credits to developers who build affordable housing units, helping to offset some of the financial risks associated with renting at FMR levels. #### Bottom Line For Section 8-focused investors, the ZIP code 78626 (Georgetown, TX) presents a challenging environment due to the significant gap between FMR and actual market rents. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow solely through Section 8 vouchers. Therefore, the recommendation for investors is to **Skip** this ZIP code if they are strictly focused on Section 8 properties. Instead, they should consider areas with a lower price-to-FMR ratio or explore mixed-income development strategies to ensure a balanced and sustainable investment portfolio.

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.