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 | $1,550 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,940 | $253,105 | 0.77% | D |
| 3BR | $2,450 | $329,119 | 0.74% | D |
| 4BR | $2,870 | $411,569 | 0.7% | D |
| 5BR | $3,329 | $519,717 | 0.64% | D |
U.S. Census Bureau data (2024)
Pflugerville’s 78660 zip code sits firmly in the booming Austin-Round Rock corridor, positioning investors in a rapidly growing suburban hub that maintains a distinct small-city atmosphere. The area is characterized by master-planned communities and a high quality of life, drawing families who value access to top-rated education; specifically, the local school district, Pflugerville ISD, includes highly regarded campuses such as Weiss High School, which serves as a major anchor for families in the region. Additionally, the presence of major commercial developments, including the nearby Stone Hill Town Center, provides robust retail and dining options that bolster the neighborhood's appeal.
From a financial perspective, the data reveals a compelling opportunity for voucher holders. The HUD 2BR Fair Market Rent for FY2024 is set at $2,050, which creates a substantial gap of $431 above the current market rent of $1,619. This premium suggests that landlords accepting Section 8 can achieve rents significantly higher than standard market conditions. While the median home value sits at $378,245 and the median 2BR sale price is $261,066, the longer median days on market of 99 days indicates that standard sales are moving at a moderate pace, reinforcing the value of a guaranteed rent stream.
The tenant pool here is strong, supported by a median household income of $113,205 and a renter share of 33.9%. Even with a high median income, the substantial renter population points to a healthy demand for housing, particularly among those seeking the educational amenities and community stability the area offers. The high income levels suggest a neighborhood that is well-maintained and safe, reducing the risk of property degradation often associated with lower-income voucher tenancies.
The strongest investor angle for 78660 is cashflow. The $431 positive spread between the FY2024 HUD SAFMR and the Zillow market rent provides a clear financial cushion that is hard to ignore. By targeting 2BR units, investors can secure payments well above the local market rate, minimizing vacancy risk and maximizing monthly yield in a competitive Texas 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.