Location: Gonzales County, 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 analysis of ZIP code 78632, located in Gonzales County, Texas, reveals key insights into its viability for Section 8 investments.
Firstly, does the rent math work? The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,470. However, market rent data is currently unavailable, which means landlords must rely on the FMR to ensure their properties remain competitive and financially feasible under the Section 8 program.
Secondly, is acquisition affordable? With a median home value of $429,264, purchasing property in ZIP 78632 is relatively expensive compared to other areas in the state. Unfortunately, the Days on Market (DOM) and the percentage of homes that have been listed with a price cut are not available, which complicates assessing the current market conditions for property acquisition.
Lastly, is there tenant demand? The population of ZIP 78632 is 1,245, with a renter share of 10.1%. This indicates a limited pool of potential tenants, which could pose challenges in finding enough qualified renters to fill all units in larger properties. Smaller portfolio owners might find it easier to manage this lower demand environment.
In summary, while the rent math can be made to work using the FMR benchmark, the high median home value suggests that acquisitions will be costly. The lack of detailed market data makes it difficult to gauge current market conditions accurately. The low tenant demand, due to the small population size and modest renter share, implies that landlords should prepare for a challenging leasing process. Given these factors, ZIP 78632 may not be an ideal location for large-scale Section 8 investments but could still be considered for smaller portfolios willing to navigate the complexities of a niche market.
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.