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 | $1,330 |
| 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 |
|---|---|---|---|---|
| 1BR | $1,410 | $209,624 | 0.67% | D |
| 2BR | $1,670 | $205,946 | 0.81% | C |
| 3BR | $2,120 | $268,504 | 0.79% | D |
| 4BR | $2,490 | $307,540 | 0.81% | C |
U.S. Census Bureau data (2024)
The ZIP code 78644, located in Lockhart, TX, represents a modest-sized community with a population of 22,348 residents. Within this demographic, 25.1% are renters, indicating a significant but not overwhelming presence of individuals seeking rental housing. The median household income in this area stands at $74,709, which provides a baseline for understanding the financial capabilities of potential tenants.
The market rent for the area is set at $1,721, which constitutes approximately 23% of the median household income. This figure is higher than the Fair Market Rent (FMR) of $1,470 for fiscal year 2024, suggesting that landlords may need to adjust their expectations regarding the availability of Section 8 vouchers. The discrepancy between the market rent and the FMR implies that while there might be some demand for vouchers, it is likely not as deep as in areas with lower median incomes.
To put this into perspective, a landlord in ZIP 78644 can expect a tenant pool that includes a mix of individuals who can afford market rates and those who rely on assistance programs such as Section 8. However, due to the relatively high median income and the higher market rent compared to the FMR, the number of vouchers available may be limited. Landlords should prepare for a scenario where they might have to balance between attracting tenants who can pay market rent and those who require rental assistance.
In summary, ZIP 78644 is neither a renter-heavy area with deep voucher demand nor a homeowner-dominated region where vouchers are scarce. It falls somewhere in between, presenting an opportunity for landlords to cater to both groups but with the awareness that the majority of tenants may be able to pay closer to market rates rather than relying solely on government subsidies.
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.