Location: Gonzales 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 | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $141,745 | 0.82% | C |
| 3BR | $1,470 | $229,123 | 0.64% | D |
| 4BR | $1,720 | $300,302 | 0.57% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 78648, which includes Luling, TX, stands at $57,621 per year. Given the market rate for rent at $1,038 per month, it becomes evident that housing costs represent a significant portion of the average household budget. To put this into perspective, the monthly rent of $1,038 amounts to roughly $12,456 annually, which is approximately 21.6% of the median annual income.
In comparison, the Fair Market Rent (FMR) standard set for voucher payments in fiscal year 2024 is $1,330 per month. This means that the government is willing to pay more than the current market rate to ensure affordable housing for eligible residents. For landlords, this presents an interesting scenario where accepting Section 8 vouchers could lead to higher rental income compared to the typical market rates.
With 30.4% of the population renting and a total population of 7,863, there is a notable demand for rental properties in the area. However, the affordability gap between the median income and the FMR indicates that many households may struggle to find suitable housing without assistance. This suggests that landlords who accept Section 8 vouchers could have a competitive edge in the local rental market, as they would be able to offer more financially viable options to potential tenants.
The takeaway for landlords considering their strategy is clear: accepting Section 8 vouchers can provide a stable and potentially higher income stream due to the government subsidy exceeding the market rate. This approach also aligns with the needs of the community, helping to bridge the affordability gap and secure tenancy in a competitive 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.