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 | $1,780 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,230 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,230 | $345,994 | 0.64% | D |
| 3BR | $2,810 | $433,405 | 0.65% | D |
| 4BR | $3,300 | $565,372 | 0.58% | F |
| 5BR | $3,828 | $672,482 | 0.57% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 78633, Georgetown, TX, presents a nuanced landscape for landlords and small-portfolio investors. With a median home value of $442,377, the area reflects a stable housing environment. However, the recent trend of only 0.2% of listings reducing their prices signals that sellers maintain significant pricing power. This is further supported by the median days on market (DOM) standing at 85 days, indicating that homes are selling relatively quickly compared to a typical market cycle.
On the rental side, the Fair Market Rent (FMR) for ZIP 78633 in fiscal year 2024 is projected to be $2,570. In contrast, the current Zillow Observed Rental Index (ZORI) stands at $1,683. This substantial gap suggests that there is room for rental rates to increase, aligning with the FMR. Landlords who adjust their rents towards the FMR level can expect to attract more tenants willing to pay higher rates, especially as the local economy continues to support housing demand.
For long-term investors considering the appreciation potential of properties in ZIP 78633, the setup implies a moderate growth scenario. The combination of strong seller pricing power and a relatively quick sale process indicates a healthy demand for homeownership in the area. As long as the broader economic conditions remain favorable and job growth continues, property values are likely to appreciate at a rate consistent with historical trends, though the exact pace will depend on future economic factors and local development.
The low percentage of price reductions and the median DOM both point to a market where sellers have the upper hand. This dynamic is crucial for landlords and investors who might be looking to sell properties in the near future, as it suggests that they can command higher prices without having to reduce them significantly. Moreover, the rental market's current rates being below the FMR indicate an opportunity for landlords to increase their income through strategic rent adjustments.
In summary, the current market indicators in ZIP 78633 suggest a robust environment for both property ownership and rental operations. The pricing power and quick sale times imply a positive outlook for those considering long-term investments in the area. However, the appreciation thesis remains tied to ongoing economic stability and growth, making it a prudent strategy for those who can afford to hold onto properties for extended periods.
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.