Location: Lee County, TX | Metro: Austin-Round Rock-San Marcos, TX MSA
| 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 |
U.S. Census Bureau data (2024)
4.2% of the population in ZIP code 78650 are renters, indicating a relatively small demand for rental properties compared to homeownership. This statistic, however, does not diminish the significance of the rental market in the area, especially considering the strong financial metrics associated with it.
$1470 is the Fair Market Rent (FMR) set for Section 8 housing in ZIP 78650 for fiscal year 2024, which is slightly below the $1,375 market rent reported by the Census Bureau's American Community Survey. This suggests that landlords participating in the Section 8 program can expect their rental rates to be close to market levels, with a minor adjustment downward.
$460,127 is the median home value in this ZIP code, reflecting a robust real estate market where property values are high, but so too are the stakes for investment.
$85,170 is the median household income in ZIP 78650, which is a critical figure for understanding the economic capacity of potential tenants. This income level generally supports the ability to pay higher rents, making the ZIP code attractive for landlords.
The data does not provide specific figures for days on market (DOM) or the percentage of listings that have been price-cut, which could indicate a stable market where prices are holding steady and properties are selling quickly once listed.
In conclusion, while the renter share is modest at 4.2%, the combination of a high median home value ($460,127), a median income that comfortably exceeds the FMR ($85,170), and an FMR that closely aligns with market rent ($1470 vs. $1,375) makes ZIP 78650 a favorable location for Section 8 investments. The lack of data on DOM and price-cut shares suggests a market that is neither overheated nor overly competitive, offering a balanced environment for landlords and small-portfolio investors.
Verdict: ZIP 78650 presents a solid opportunity for Section 8 investments, with financial metrics favoring stability and profitability.
Data Sources: FMR data from HUD (2027). 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.