Location: Blanco County, 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 | $1,330 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,120 | $477,404 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 78636 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent, which has direct implications for landlords and small-portfolio investors. The FMR for ZIP 78636 in fiscal year 2024 is set at $1710, while the Census ACS reports an average market rent of $1123. This means there is a $587 difference, or a 52.2% premium, in favor of FMR.
The disparity indicates that voucher tenants can offer higher yields compared to open-market tenants. Given that 30.0% of residents are renters, and the median income is $72,663, it's evident that a substantial portion of the population may rely on housing vouchers to afford living spaces. With a median home value of $621,160, the rental market is likely segmented, with voucher holders providing a reliable stream of income above the average market rate.
This premium suggests that landlords who accept Section 8 vouchers can expect a more consistent and higher rental income than those who only attract open-market tenants. However, it also implies that properties must be maintained to meet HUD standards, and there might be additional administrative burdens associated with managing voucher tenants.
To summarize, the $587 or 52.2% premium that voucher tenants can provide makes ZIP 78636 a favorable location for yield-focused investments. Landlords should consider the benefits of accepting Section 8 vouchers, especially in light of the economic conditions where the median income supports the use of such assistance programs.
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.