Section 8 Fair Market Rent (FMR) for ZIP 78628 - 2027

Investment Score for ZIP 78628

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	$1,390
1 Bedroom	$1,470
2 Bedrooms	$1,740
3 Bedrooms	$2,190
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,740	$337,137	0.52%	F
3BR	$2,190	$386,983	0.57%	F
4BR	$2,580	$506,021	0.51%	F
5BR	$2,993	$600,513	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78628 (Georgetown, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Georgetown, TX, in ZIP code 78628, as of 2026, is set at $1760 for a two-bedroom unit. This amount represents 16.8% of the median household income in the area, which stands at $125,635. However, the actual rent for a two-bedroom unit in this ZIP code is significantly higher, with the Zillow median price for a two-bedroom home being $342,383. This translates to a price-to-FMR ratio of 16.2x, indicating that the actual rental costs far exceed the FMR guidelines. Given these figures, there are notable constraints for voucher holders. The FMR for a two-bedroom unit is $1760, but the actual rental cost is likely much higher due to the high price-to-FMR ratio. This means that many Section 8 voucher holders would struggle to find suitable housing within their budget, especially if landlords are unwilling to accept vouchers for properties priced below market rates. #### Affordability & Renter Profile Georgetown has a relatively affluent population, with a median household income of $125,635. Despite this, 24.5% of the residents are renters, suggesting a diverse mix of homeowners and renters. The occupancy rate of 96.1% indicates a robust demand for housing, making it a tight market where supply is limited relative to demand. The high median household income and the significant price-to-FMR ratio suggest that the typical renter in this area is likely to be middle-class or upper-middle-class individuals who can afford market-rate rents. For those relying on Section 8 vouchers, finding affordable housing is challenging given the disparity between FMR and actual rental prices. #### Investor Angle From an investor perspective, the ZIP code 78628 presents a mixed picture. The FMR for a two-bedroom unit is $1760, but the actual rental market price is much higher, around $342,383 based on the Zillow median. This implies that properties rented at FMR levels would likely generate negative cash flow, as the rental income would not cover the mortgage payments and other expenses associated with property ownership. In terms of investment grade, the high price-to-FMR ratio suggests that the market is not favorable for investors looking to exclusively cater to Section 8 voucher holders. The tight housing market and high median household income indicate that there is a strong preference for market-rate rentals, which could make it difficult to attract tenants willing to pay only the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1490, which is still significantly lower than the median home price. While cash flow might still be challenging, smaller units tend to have more competitive rental rates compared to larger homes. 2. **Consider Mixed-Income Developments**: Investors might want to explore mixed-income developments where a portion of the units are reserved for market-rate renters while others are available for Section 8 voucher holders. This approach can help balance the financial impact of renting at FMR levels by leveraging the higher rental income from market-rate units. 3. **Engage with Local Housing Authorities**: To improve the likelihood of attracting Section 8 voucher holders, investors should engage with local housing authorities and understand the specific requirements and preferences of voucher recipients. This can include offering amenities and services that are attractive to low-income families, such as on-site management and maintenance, which can help offset the lower rental income. #### Bottom Line For Section 8-focused investors, the ZIP code 78628 presents a challenging environment due to the high price-to-FMR ratio and tight housing market. The recommendation is to **skip** this ZIP code for investments aimed solely at Section 8 voucher holders. Instead, consider areas with a lower price-to-FMR ratio or explore mixed-income development strategies to balance the financial risks associated with renting at FMR levels.

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.