Location: Llano County, TX | Metro: Burnet County, TX
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 | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $292,442 | 0.39% | F |
| 3BR | $1,490 | $408,804 | 0.36% | F |
| 4BR | $1,500 | $1,097,262 | 0.14% | F |
U.S. Census Bureau data (2024)
Kingsland, TX, located in Llano County and identified by ZIP code 78639, stands out due to its relatively low population density and unique economic profile. With only 8,719 residents, it has a rental market share of 26.0%, indicating that a quarter of the housing units are rented. The median household income in Kingsland is $57,742, which is modest compared to larger metropolitan areas. However, the median home value is notably high at $435,759, reflecting the desirability of homeownership in this area.
The Section 8 voucher program plays a significant role in the local rental market. For fiscal year 2026, the Fair Market Rent (FMR) for Kingsland is set at $1,040 per month. This figure contrasts sharply with the market rent, known as the ZORI (Zillow Observed Rent Index), which is $1,348 per month. Landlords who accept Section 8 vouchers can expect to receive a payment that is below the market rate, but still provides a reliable and government-backed income stream. The difference between the FMR and the ZORI suggests that there may be limited availability of affordable housing units for voucher holders, potentially creating opportunities for landlords to fill this gap.
Evaluating the overall data signature of ZIP 78639, it appears to be stable rather than transitional. The relatively high median home value indicates a mature market where property values have been established over time. Additionally, the modest median income and rental market share suggest a community that is not undergoing rapid demographic shifts. While the disparity between FMR and ZORI highlights the challenge of affordability, it also points to a consistent demand for rental properties that can accommodate Section 8 tenants. For small-portfolio investors and landlords, Kingsland presents a balanced opportunity where the risk is tempered by the stability of the local economy and housing market.
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.