Section 8 Fair Market Rent (FMR) for ZIP 78653 - 2027

Investment Score for ZIP 78653

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,430
1 Bedroom	$1,510
2 Bedrooms	$1,790
3 Bedrooms	$2,260
4 Bedrooms	$2,650
5 Bedrooms	$3,074
6 Bedrooms	$3,443
7 Bedrooms	$3,718
8 Bedrooms	$3,904

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,790	$260,607	0.69%	D
3BR	$2,260	$287,777	0.79%	D
4BR	$2,650	$343,003	0.77%	D
5BR	$3,074	$411,689	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 78653 (Manor, TX) The ZIP code 78653 is located in Travis County, Texas, and has a population of 41,291 residents. The median household income in this area is $93,900, indicating a relatively affluent community. However, only 16.1% of the population are renters, which suggests that the housing market is primarily owner-occupied. The occupancy rate stands at 94.8%, reflecting a high demand for available housing units. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for 2026 provide insight into how rental costs compare to the income levels of potential tenants. For a two-bedroom unit, the FMR is set at $1,970 per month. This amount represents 25.2% of the median household income in Manor, TX. Given that the Zillow median price for a two-bedroom home is $260,579, the price-to-FMR ratio is approximately 11.0x. This means that the median home value is about 11 times higher than the monthly rent for a two-bedroom apartment. This significant disparity between home values and rental costs can be challenging for Section 8 voucher holders. The FMR is designed to ensure that voucher holders can find affordable housing, but the actual rents in Manor, TX, might exceed these limits. Therefore, voucher holders may face difficulties finding suitable accommodation within their budget constraints. ### Affordability & Renter Profile Given the median household income of $93,900 and the fact that only 16.1% of the population are renters, it is likely that the majority of renters in Manor, TX, are individuals or families who have lower incomes relative to the overall population. The median rent for a two-bedroom unit is $1,970, which is a substantial portion of the median income. This indicates that the rental market is relatively tight, with limited options for low-income renters. The occupancy rate of 94.8% further supports the notion that the market is tight, as there is little vacancy to accommodate new renters. Additionally, the small percentage of renters in the area suggests that the rental market is less competitive compared to areas with a higher percentage of renters. This could mean that landlords have more leverage in setting rent prices, potentially leading to rents exceeding the FMR. ### Investor Angle From an investor perspective, the ZIP code 78653 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1,970, which is significantly lower than the median home value of $260,579. This implies that the rental market is not keeping pace with the appreciation in home values, making it difficult to achieve positive cash flow solely based on FMR. To determine if this ZIP code is cash-flow positive, we need to consider the typical expenses associated with property ownership, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of 1.5x the FMR for total expenses, the break-even point would be around $2,955 per month. Given that the FMR is $1,970, it is unlikely that an investor would achieve positive cash flow without charging above the FMR. The investment grade for this ZIP code would be considered moderate to low due to the tight rental market and the difficulty in finding affordable housing for voucher holders. The high occupancy rate and limited rental supply suggest that there is a strong demand for rental properties, but the affordability issue could deter some potential tenants. ### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR to ensure they can attract Section 8 voucher holders. A two-bedroom unit priced at $1,970 or slightly above would be more likely to secure tenants with vouchers. 2. **Consider Mixed-Income Developments**: Developing mixed-income communities where a portion of the units are designated for Section 8 voucher holders could help balance the financial risks. This strategy allows investors to charge higher rents on other units while still providing affordable housing options. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of vouchers and the preferences of potential tenants. This can help investors tailor their offerings to meet the needs of voucher holders and improve the chances of securing long-term tenants. ### Bottom Line For Section 8-focused investors, the ZIP code 78653 presents a challenging environment due to the tight rental market and the high cost of living relative to the FMR. While there is strong demand for rental properties, the limited number of renters and the high occupancy rate make it difficult to find affordable units. **Recommendation**: Skip. The high price-to-FMR ratio and the tight rental market suggest that achieving positive cash flow will be difficult without charging above the FMR, which could exclude many potential Section 8 voucher holders. Investors looking to focus exclusively on Section 8 properties would likely fare better in areas with a higher percentage of renters and a more balanced price-to-rent ratio.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.